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For millions of debt-strapped Americans, credit counseling agencies seem like the proverbial good guys in white hats riding to their financial rescue. In a generic sense, this might be true, but a drastic overhaul in bankruptcy laws---as well as the lack of standardized training for the industry's representatives---have made the... more »
Consumer credit counseling services are designed to assist consumers who are overwhelmed with unsecured debt and need assistance with renegotiating the debt to get lower interest rates and monthly payments. CCCS attempts to make debt manageable while keeping consumers out of bankruptcy, if possible. These services have received bad... more »
When someone finds themselves in debt and they just don't know where to turn, they can find some much needed help by visiting a credit counseling agency. There are thousands of these agencies across the country and finding the right one is the key to you getting out of debt and staying that way. more »
When consumers realize that they do not make enough money to cover their monthly debt obligations, they may think that bankruptcy is their only option. Bankruptcy is a pretty serious step to make and consumers may be better served by seeking the assistance of a credit counseling agency. The benefits of credit counseling have become... more »
Consolidated credit counseling services often sell an enticing plan. Many purport to be able to reduce your debt load by more than 50 percent. Unfortunately, credit counseling is also an industry rife with scams and shady business practices. Hiring such a service without examining all the fees and additional payments may end up... more »
The average American has approximately $33,000 in debt--and that's not counting the mortgage....
It's never fun to walk to the mailbox and be greeted with a pile of bills. Getting...
Credit card debt can make you feel like you are drowning. If most of your paycheck goes...
If you overspend on your credit cards, credit counseling is one way to fix your finances. Many agencies offer credit counseling and debt... more »
Many people face financial crises at some time in their lives. Credit-counseling agencies work with individuals to help resolve financial... more »
Credit counseling is required before you can file for bankruptcy. If you didn't complete credit counseling as required, then you are not eligible... more »
Careers in customer service positions are some of the most easily had jobs in America--not because these jobs are easy, but because there is such... more »
Tough economic times can call for tough choices when it comes to paying off debt, especially credit card debt. Although credit cards can lead you... more »
In any kind of economy, credit counseling services benefit many people who are struggling to pay off debt due to bad or misinformed spending... more »
Credit counseling (known in the United Kingdom as debt counselling) is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education.
Credit counseling often involves negotiating with creditors to establish a debt management plan (DMP) for a consumer. A DMP may help the debtor repay his or her debt by working out a repayment plan with the creditor. DMPs, set up by credit counselors, usually offer reduced payments, fees and interest rates to the client. Credit counselors refer to the terms dictated by the creditors to determine payments or interest reductions offered to consumers in a debt management plan.
Common features of Debt Management Programs
After joining a DMP, the creditors will close the customers accounts and restrict the accounts to future charges. The most common benefit of a DMP as advertised by most agencies is the consolidation of multiple monthly payments into one monthly payment, which is usually less than the sum of the individual payments previously paid by the customer. This is because credit cards banks will usually accept a lower monthly payment from a customer in a DMP than if the customer were paying the account on their own. Some DMPs advertise that payments can be cut by 50%, although a reduction of 10-20% is more common.
The second feature of a DMP is a reduction in interest rates charged by creditors. A customer with a defaulted credit card account will often be paying an interest rate approaching 30%. Upon joining a DMP, credit card banks sometimes lower the annual percentage rates charged to 5-10%, and a few eliminate interest altogether. This reduction in interest allows the counseling agencies to advertise that their customers will be debt free in periods of 3-6 years, rather than the 20+ years that it would take to pay off a large amount of debt at high interest rates.
A read more at » http://en.wikipedia.org/wiki/Credit+counseling
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