Consumer Credit Counseling Service

Why do many consumers choose a consumer credit counseling service? The quick answer is based on cost, availability and effectiveness. In many cases, home foreclosure help and even assistance with mortgages home refinancing is available. This assistance is far more effective than disputing claims, and much more likely to lead to success than filing bankruptcy. Consumer credit counseling services start with the premises that poor credit is not a problem. Counselors provide consumers guidance and experience crafting a plan for financial success. To accomplish this goal, all consumer credit counseling services rely upon willing cooperation between lenders and individuals.

What you should expect from a quality consumer credit counseling service:

• Prevent collectors from calling, harassing and demanding payments.
• Prevent default, breech of security agreements, and foreclosure.
• Provide a debt and credit solution to bring payments current as a means of preventing bankruptcy.
• Cut interest rates by a significant margin and/or extended repayment terms.
• Receive a waiver of late fees and penalties in many cases.
• Reduce monthly payments to a more manageable level.
• Provide necessary tools, planning, assistance, and instructions for paying off debts within two to five years.

What consumer credit counseling cannot do:

Consumer credit counseling is designed to assist clients in the course of repaying existing debts. Past credit scores and rating, and the effect of histories upon these items, remain intact. Adverse entries will continue to dampen scores for a period of seven to ten years from the time of the initial occurrence.

The cost for participating in a consumer credit counseling service varies along with the range of assistance provided. A few moments spent comparing costs and services always produces better results.