What are the advantages of consumer credit counseling as a way of getting free from debt?

Answer 1

In general, when dealing with a non-profit credit counseling service their services are going to be free or low cost which can be a huge benefit to the consumer. The assumption would be that the non-profit is more interested in helping you than in making themselves a profit. They are still required to abide by all other laws and regulations that govern businesses. However, they can be run as efficiently, or as poorly, as any other organization. When searching for a non-profit you can look for the same accreditation from organizations such as the Better Business Bureau, etc. Most non-profits have websites that can be found online. You can tell by the website name which almost always ends with .org (which stands for "organization") rather than .com (which means "commercial").

A non-profit status for an agency does not mean they do not make a profit. It means the profit they make is used to fund their ability to provide more services to the public. The surplus money does not go into the pockets of its shareholders or management. Having a non-profit status means they are certified by the government as non-profit and therefore exempt from paying taxes. The reason they are granted that status is because they are providing services to the public that the government would otherwise be providing or paying for. The government is willing to make them tax-exempt because they are actually saving money for the services they do not have to provide. Non-profits provide benefits to the public and they are usually the first place you turn if you have an emergency and need food, shelter, clothing, education, or medical care. The American Red Cross is a good example of a non-profit agency.

When checking out a non-profit's website be as careful as you would with any other organization. Scan their home page; search for other organizations they are affiliated with; and search for national organizations from which they are accredited. Look for many articles that explain or educate you about credit counseling and their services. If you are educated before you contact them, their job is easier and so is yours. A list of approved credit counseling agencies by state and judicial district is available on the U.S. Trustee Program website and will also tell you where to take the courses to prepare for bankruptcy. To help you choose an approved credit counseling agency, the Federal Trade Commission offers facts for consumers that provide helpful suggestions for finding the best counselor for you. They also offer a list of "must do" items for anyone who is on a debt management plan most of which are appropriate for anyone in credit counseling.

There are some for-profit business that offer non-profit debt consolidation. CreditGUARD of America, Inc. is an independent, non-profit credit counseling agency that provides debt counseling to consumers throughout the United States. The agency you choose does not have to be local to you, but if you do not have ready access to a computer it should be.

Answer 2

The benefits of consumer credit counseling is that you will get some helpful advice on how to get your consumer credit back on track. There are many benefits that come with consumer credit counseling.

Answer 3

Consumer credit counseling allows the individual to track their credit usage. Also by having counseling, the individual's debts are shown and the counselor provides techniques to getting rid of the debt.

Answer 4

Some advantages of a consumer credit counselling agency includes receiving expert advice on financial matters from financial experts, and having access to a experienced team of financial negotiators.

Answer 5

Consumer credit counseling agencies can help people who are living paycheck to paycheck and are in debt. These companies can help you manage your money better and reduce your debt. Some of these agencies aren't legitimate, so make sure you choose a good one.