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11 May

Consumer Credit Counseling

General

Posted by: Gurmit Singh

Consumer Credit Counseling Service is non-profit agency with the goal of helping people to solve their financial crises. Consumer credit counseling is not a loan company. They are advice givers, and will also contact all of your creditors for you to see what they can do about getting penalties and late charges knocked off of your balances in order to make the amount you owe less. Consumer credit counseling is actually a form of debt consolidation, but it does not involve a loan. Sometimes the term debt consolidation can also refer to a home equity loan that is used to pay off debt.

It integrates one-on-one money management education into a comprehensive credit counseling session for each client. CCCS will make you sign an agreement to not obtain any more debt until the current debt is paid off. You then make a single monthly payment. CCCS will work with you and your creditors to set up a repayment plan and help you set up a
money management plan for you to handle your money more effectively.

Consumer credit counseling is not only available on short notice, but easy and worthwhile. Itis a big service field in the United States. It is a common problem for many in the United States to face a potential credit card debt.

Itis provided by non-profit agencies. You can attend either individual or group sessions, and will need to obtain a certificate of completion before filing for bankruptcy. Itis paid by the credit industry to “help” you pay creditors. Your creditor counselor is being paid by the credit card companies. Itis third-party assisted (TPA) and will have a long term effect on your credit profile. While your actual credit score may not be directly affected, your future credit reputation will be.

It is a great way to get a handle on your credit. While you will have to close your accounts and work out a budget to follow, it can help you to pay down the debt that you have and keep you out of
filing for bankruptcy. It is often available multiple ways: online, by phone or in person. It is an alternative for consumers experiencing financial difficulties and unable to make their minimum payments. However,
Consumer Credit Counseling organizations typically attempt to reduce interest rate and fees on your debts, not the balances themselves.

It is reported to the major credit agencies and will stay on your credit report for 7 years. There are ways to eliminate the debt in 12 – 36 months and build an emergency fund. It is a choice that exists, but it is not perfect by any means. Do your homework and ask a lot of questions.

It is very essential on the part of the organization so that this thing improves to decrease the debt status, and also it can increase the financial stability to its peak. Financial decisions are personal, based on an individual’s situation. Consult with a financial professional before making any financial decisions. Financial freedom means many different things to different people. To a teenager, it might mean having their own place and cutting your ties with the Bank of Mom and Dad.

Bankruptcy is not an easy or even quick fix. It is a very serious decision with serious consequences. Bankruptcy is increasingly being perceived as an “easy way out” for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma.

Creditors may report that your account is in financial counseling. Ultimately, this may be better than an ongoing record of delinquent or missed payments, “charge-offs”, or debts sent to collection. Creditors are more likely to reduce your interest rate if they know you are in a counseling program. They might not even charge you interest so that you can pay your debt to them.