About Consumer Credit Counseling Agencies
Consumer credit counseling agencies are either public or private agencies that work with individuals to work out debt payment solutions. Contact a consumer credit counseling agency to get help consolidating credit card debt or loans with advice from a financial adviser in this free video on money management and financial planning.
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Hi, my name is Matt McKillen. I'm with Innovative Financial Group. The question posed to me today is what are Consumer Credit Counseling Agencies? Well, Consumer Credit Counseling Agents can either be like private type agencies or they can be public. Now generally, what a Consumer Credit Counseling company does is they will have you meet with them, bring in all of the bills that you have for your car loans, your credit cards, your mortgage; basically what, lay out what all your expenses are. And then, what the counseling agency will do will they will contact your creditors on behalf of you, and try and work out a debt solution or debt repayment plan. For example, if let's say you have ten credit cards, and your minimum payments on all those cards are eight hundred dollars or six hundred dollars a month. What the credit agency is going to do is they're going to contact all your creditors and either get them to reduce the interest rate; perhaps even forgive some of the balance on those credit cards. And then in turn, what you're going to do is you're going to make one payment a month to the credit counseling agency, and they in turn will disperse those funds out to these different creditors on your behalf. It's one way to avoid bankruptcy which is one of the selling points; why a lot of lenders are willing to work with Consumer Credit Counseling Agencies, because the homeowner's trying to show good faith that they're trying to pay their bills, so you'll find that a lot of times when you work with an agency of this type they will either forgive the interest on the credit card, reduce the balance. There's really a variety of things that they can accomplish. Again, my name is Matt McKillen, and I'm with Innovative Financial Group.