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Know, How does "Credit Counseling Program" works?

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credit counseling is a very common form of online debt consolidation. It is also known as credit card consolidation. Currently rising interest rates and mounting credit card debt is prompting many consumers to look for ways to consolidate their credit card bills and so credit card counseling gained recognition among people.

Credit counseling helps to make one payment directly to them, which then they distributes to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your creditors by contacting your credit card companies and negotiating for lower interest rate on your behalf. You can usually expect to pay back your entire balance on the debt that you owe and anywhere between six and twelve percent of the interest. This is about half of what your normal interest would be currently.

On average, most online credit counseling programs take around five years. As such, credit card consolidation does not affect your credit rating. In fact, the results of consolidation are often positive simply because it's easier to manage and you pay less interest.

And generally, with a few rare exceptions, your credit is in worse shape than when you started. And, what about the fee's to the credit counseling company?

Sub: #1 posted on Mon, 07/14/2008 - 22:13

Moderators Cum Industry Expert
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There are non profit credit counseling companies out there, it hurt my credit somewhat, but not as much if I were to file BK or continued to be late on my payments due to the fact that my job status changed and I was unable to meet my obligations.

Sub: #2 posted on Mon, 07/14/2008 - 22:28

Shazzers Shazzers
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In some states NJ being one of them, they are required to be no profit. If someone has the list it would be good to make a sticky from it!

Sub: #3 posted on Mon, 07/14/2008 - 22:32

Frogpatch Frogpatch
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(Posts: 5381 | Credits: 652.52)

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