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Credit Counseling Companies
Credit counseling companies are not always what they appear to be. While many credit counseling companies, both for profit and not for profit, are very legitimate businesses with only the consumers best interest at heart, some unscrupulous operators are giving that industry a bad name. A few issues have arisen over the last couple of years that relate to the actual status of some companies that claim to be not for profit, how money they charge consumers, and who exactly pays the costs of some of these firms. Credit counseling companies in a number of states have drawn the attention of the Federal Trade Commissions office which has so far as to shut some of these businesses down completely and others have been fined and threatened with similar action if they do not change some of their practices. These charges have shone a new spotlight on a segment of the financial services sector, which had been operating with little attention, and out of control, according to some knowledgeable observers and industry watchers.
Several credit counseling services that have been under the Federal Trade Commissions magnifying glass are the National Consumer Council which has been masquerading as a not for profit agency while simply raking in profits like they were going out of style. One of the most famous or infamous amongst this group is Ameridebt that was shut down for defrauding individual Americans who were seeking debt relief of millions of dollars in hidden fees and charges. Other for profit companies providing credit counseling have also been exposed as serving several employers as they receive funding from the credit card industry to cover all of their overhead costs. Not only is the money they receive from clients pure gravy but also a lot of observers are questioning their loyalty to the people that they are in business to serve. Several class action lawsuits are already winding their way through the court system on this apparent conflict of interest.
Another major area of contention has arisen about the validity and effectiveness of the whole credit counseling process on the credit rating of the individual who goes through this process. There are a few flaws in the current process that actually make it harder and longer to regain your credit through this process than even through bankruptcy. If the intention is to avoid bankruptcy shouldnt credit counseling ameliorate this situation rather than making it worse? There are plenty of great credit counseling firms in the marketplace. Just be sure to do your checking first because sometimes credit counseling companies are not what they appear to be.
Personal Credit Repair
Ask these questions to your counselor: Is there any monthly charge, set up charge or penalty for leaving the program?
Thats why every year millions of Americans go bankrupt or are forced to undergo credit counseling, debt reorganizing, or debt consolidation just to stave off that black mark on their credit ratings. Let's look at an example: if you pay 0 per month it will take 10 months to repay a 00 loan in full. Your debt counselor will look after all of that for you and after a period of months of years you will once again enjoy a positive credit rating. Anyone who has already missed the payment date or the consumer anticipating a possible hardship in near future can benefit from the service. You might want to consider consolidating two or more credit cards if you have them.
Yet no one wants to talk about it publicly.
Credit Counseling: Debt Settlement Services A debt settlement service is something that youll want to think about if you find yourself with a high amount of debt that you are having trouble paying back each month. The major differences between for profit and not for profit debt counseling services are in the fees they charge, the range of services they provide in-house, and the experience of their staff. If the intention is to avoid bankruptcy shouldnt credit counseling ameliorate this situation rather than making it worse?
If you have not seen your credit report and have been denied by a creditor, you should get a copy of your credit report and analyze why you were denied.
Bring all of your financial materials with you including the latest statements from your creditors and a copy of your most recent pay or income stub. Contact the creditor to see if an alternate schedule of payments can be implemented. There are a few flaws in the current process that actually make it harder and longer to regain your credit through this process than even through bankruptcy. One way that you can start to manage your debt is to first make a list of all your debts. For the debt in the one position youll pay the minimum amount plus the total AC. There are several reasons why you may be denied credit. |
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