Definition Of a Consumer Credit Counseling Service : Repair My Credit

Often credit counseling services are non-profit organizations, however, there are numerous for profit businesses that offer credit advice and counseling. Whether dealing with a non-profit organization or a for profit company, be sure to ask about the services and information provided, the qualifications of the credit counseling staff, and the fees associated with the counseling.

Hector Milla Editor of the “Credit Card Debt Counseling” website — http://www.CreditCardDebtCounseling.biz — pointed out;

“…The purpose of consumer credit counseling is to advise consumers on how to best manage and budget their money, on the way to achieving financial stability. Credit advisors take a detailed look at a consumer’s income and expenses, to aid the consumer in developing a solid financial plan. Counselors may recommend budgeting classes or workshops in financial stability, or they may work one-on-one with clients, to develop individual plans. Many counseling services offer these classes, along with pamphlets and educational materials, geared to repairing credit, managing money, and building financial independence…”

Consumers with excessive debt, frequently seek the advice of credit advisors. In these instances, counselors may recommend a Debt Management Plan (DMP). Under a DMP, credit counselors arrange agreements with creditors that allow the repayment of unsecured debt at a reduced interest rate. Counselors negotiate with these creditors to determine a lowered interest rate and the waiving of late fees and penalties associated with the client’s account. DMPs are most often implemented to curb excessive credit card debt. They can take anywhere from thirty months to five years to complete. During that period, consumers must agree not to take on any additional debt.

“…DMPs can be an effective way to get out from under oppressive debt, but, as stated by the United States Federal Trade Commission, beware of credit counseling institutions that encourage a DMP as your only option. As a wise consumer, ask questions, do your own research, and work with a credit counselor to compile a variety of options to explore…2 added H. Milla.

Further information about how to get the most of your credit counseling process by visiting; http://www.CreditCardDebtCounseling.biz

Retrieved from “http://www.articlesbase.com/finance-articles/definition-of-a-consumer-credit-counseling-service-1508591.html”

(ArticlesBase SC #1508591)

Hector Milla –
About the Author:

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

]]>

Rate this Article

1
2
3
4
5

vote(s)
0 vote(s)

Feedback
RSS
Print
Email
Re-Publish

Source: http://www.articlesbase.com/finance-articles/definition-of-a-consumer-credit-counseling-service-1508591.html

Article Tags:
credit, counseling, credit counseling, debt counseling, settle, settlement, debt settlement, settlement counseling, debt, usa, debts