What is Consumer Credit Counseling?
People generally seek consumer credit counseling when the only alternative left is filing for bankruptcy. The credit counselor studies your finances and depending upon your debts, designs a debt management plan. The counselor forwards the plan to your creditors for their approval. If your creditors approve it, you start making payments to the credit counseling agency and not to your creditors. The credit counseling agency will forward your payments to your creditors.
Credit Counseling Service
Should you seek credit counseling service? You don't have to, but some people are comfortable if the credit counseling agency handles the job for them. Given their experience, the credit counseling agencies often succeed in persuading your creditors to reduce interest rates, waive late fees, or extend the loan repayment period.
Accessing the Best Sources of Credit Counseling
There are several credit counseling agencies you can access. Ensure that the credit counseling agency you approach is a reputable one and has been in business for some time. The agency should be a non-profit entity and the counselors at the agency should have been certified by an independent organization. The agency itself should have been accredited by the International Standards Organizations or by the Council on Accreditation. Of course, the agency should comply with the laws of the state it is operating in — it should be licensed and bonded to do business in your state, and the fees should be reasonable. The agency should also be a member of one of the following associations: The National Foundation for Credit Counseling or The Association of Independent Consumer Credit Counseling Agencies
The following are the top ten sources or agencies for credit counseling:
1. CareOne Service Providers
2. AAA Fair Credit Foundation
4. Money Management International
5. American Consumer Credit Counseling
6. American Financial Solutions
7. Take Charge America
8. ClearPoint Credit Counseling Solutions
9. Auriton Solutions
10. InCharge Debt Solutions
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