Be careful: credit counseling is too expensive for most!
Credit Counseling
Pros
- No creditor phone calls.
- Reduce several payments into one.
- You should get lower interest rates. (On average around 10%)
Cons
- Bad for your credit
score. Your creditors will report that a third party is helping you
with your finances. Most lenders view this the same way they would a
Chapter 13 bankruptcy.
- Too expensive. Counseling monthly payments often cost as much, if not MORE, than your current minimum payments.
- Potentially frustrating. A lot of counseling companies do not do what they say they will do.
- All cards will be closed.
- Too long. Takes about 5 years to complete.
- Lowest success rate of any debt program.
A credit counseling company has pre-negotiated interest rates with your credit card companies, but they also receive a fare share from your creditors for managing your debts! That means they get paid for you paying your bills!
It
is a program designed for those who have trouble paying more than
their minimum payments AND have cards with high interest rates. The
money you save with these programs is money that would have been
charged to you in the future, because your cards had a higher interest
rate before you joined the program. However, the negative impact on your credit still occurs.
Avoid Credit Counseling, instead see if your debt resolution program is right for you...Fill out the
form to the right or call (866) 559-3328 and one of our Professional Debt Advisors will contact you for a FREE session.
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Debt Settlement - Straight Talk