Debt Consolidation Forums Credit Repair, Credit Score and Credit Report forums
Know, How does "Credit Counseling Program" works?
Mon, 07/14/2008 21:12
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.