Will Bill Collectors Work with Credit Counselors?
Credit counselors work to assist debtors to manage their financial situations. Often credit counselors will deal directly with bill collectors to help the debtor create a workable financial plan that is agreeable to both parties.
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How Credit Counselors Help
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Credit counselors assist consumers in solving various financial problems. Services offered to consumers vary depending on their needs, but budgeting and debt management are two common programs. As part of the debt-management programs, credit counselors will work with the consumer and their creditors to work out a payment plan.
Dealing with Bill Collectors
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Bill collectors realize that credit counseling is often a step toward bankruptcy, and they often will negotiate lower payments and fees to be able to collect some payment.
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Collection Calls
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Credit counseling organizations will deal with creditors when they call, and people enrolled in a credit counseling program may refer collection calls to the credit counselor. Collectors may still call the debtor. But once a credit counseling plan and payments have been started, collector calls typically stop or become less frequent.
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References
- Better Business Bureau: News Center, Tips on Choosing a Credit Counseling Agency
- Federal Trade Commission: Bureau of Consumer Protection, Education, Publications, Consumer, Credit, Facts for Consumers
- CreditCards.com: Credit Card News, Credit Card Help, 8 steps to picking a credit counselor
- Family Financial Education Foundation: FREQUENTLY ASKED QUESTIONS, Will starting in your program stop the collection calls?
- Photo Credit There is question image by Oleksiy Ilyashenko from Fotolia.com
