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Credit and Debt Counseling

Credit and debt counselors advice people on how to improve their credit and economic situations. Debt counselors help people to understand where their money is going, how they are being charged with interest, and the best ways to knock out their bills. They will sometimes mediate with debtors to help reduce what a person owes. Credit counselors will look at payment histories, credit scores and reports, and overall debt to help a person make a plan to raise their credit scores.

140 Questions

What type of services does the National Foundation for Credit Counseling provide to their clients?

The National Foundation for Credit Counseling provides credit counseling, housing counseling, bankruptcy counseling and education, and financial education to their clients. They also have tools available to help consumers learn to budget, tips on how to save and resources to teach kids how to save.

What are some reputable credit counseling companies?

There are many reputable credit counseling companies. Some of the most reputable ones include '123 Credit Counselors, Inc', 'Abacus Credit Counseling' and 'Advantage Credit Counseling Service, Inc'.

How does American Consumer Credit Counseling's service work to get its clients out of debt?

The American Consumer Credit Counseling offers a debt management program that reduces interest rates and over the limit fees, consolidates unsecured debt into one easy monthly payment, pays off debt in most cases within 5 years, and develops a workable budget that you can live with.

Where can one find Christian credit counselors?

It is possible for one to locate Christian credit counselors online. An organization exists entitled "Christian Credit Counselors", and their URL is simply their name.

What are the best online credit counseling websites?

The Internet offers a vast array of reputable websites that offer credit counseling. Some of the most highly regarded sites include the official pages of the companies Consumer Credit and Apprisen.

Where can a person get advice on credit counseling?

There are a number of sites one can visit to get advice on credit counseling. One can find such advice at the 'National Foundation for Credit Counseling' or 'Better Business Bureau' who have a good advice on choosing a credit counseling agent.

What is the difference in consumer credit counseling and debt settlement?

Answer:

If you're struggling to manage your debts, then credit counseling can help you find a way out. Federal law now mandates that all bankruptcy candidates receive credit counseling before filing. However, credit counseling services can also help you long before bankruptcy becomes a possibility. credit counseling offer a wide range of solutions based on your specific situation. They'll review your finances, advise you about budgeting, and devise a program to help you get out of debt. Where as in debt settlement your debt amount gets reduced. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.

How do you break contract with family credit counseling corporation?

Technically speaking there is no "Contract", its more of an agreement. I believe they may have gone under and sold their accounts to "American Debt Counseling, Inc." but from what I've read they have the same ripoff practices. The way to break your contract is simply fax them a written request to stop your automatic payments.

Does working with a debt counselor really help paying off your credit cards?

You want to make sure that you check with the BBB to see if they are a legite company. I would recommend calling a company that I trust, and have worked for in the past called, "Alliance Credit Counseling, Inc'. Their phone number is 704-341-1010. They are a non-profit organization that can help, and assist you by enrolling you in a "Debt Management Program". These type of companies have contracts with certain creditors, and debtors; which allows you to pay your debt in a few years or less with as little as 5% interest, or as low as 0%. If you are left with this option, then this is a great way to get out of debt in a short period of time.

What are good credit counseling programs?

Consumers who want to substantially reduce their debt should consider their options before contacting consumer credit counseling services. Companies specializing in debt counseling may be working on behalf of the creditors (your credit card companies, etc.). While they may offer you terms that appear attractive, remember that debt counselors may not have your best interests in mind when designing a payoff program.

Can you still get credit cards if you are in a debt counseling program?

== == You can probably still get credit cards if you are enrolled in a debt management program. However, doing so can jeopardize the benefits that you already have with your existing creditors. Your interest rates and minimum payments could go up substantially if they drop you from the program.

If you are enrolled in a debt management program, you have agreed not to open new credit card accounts until you complete the program. Remember, this is what got you in trouble in the first place, so it is best to be careful when applying for new credit when you have had problems in the past.

Will debt counseling hurt your credit?

Getting debt counseling is a good thing and shows your willingness to take care of your debt in a responsible way. If you are undergoing debt counseling, a notation to that effect may be appear on your credit report. This does not affect your credit score but how each creditor views this notation, differs from creditor to creditor. While it may seem unfair, there are some creditors who view debt counseling as a negative to your credit worthiness. In their view, the fact that you are in an unmanageable debt situation is not a good sign, unless you can convince them otherwise. So the reality is debt counseling may hurt your credit, depending on the subjectivity of the creditor.

AnswerDebt counseling will never hurt your credit, since it is an educational activity. If you choose to enroll in a debt management program, that does not hurt your credit either. What could hurt your credit is closing any accounts that have substantial available credit. Other than that, your credit generally improves over the life of the debt management program.

Is family credit counseling corporation a good company?

No! Family Credit Counceling Corporation is a rip off scam company. Please see lawsuit

http://www.hrsclaimsadministration.com/cases/bak/?vh=1

Please also check rip off website. You will see hundreds of complains.

How much is a certificate from a debt counselor for bankruptcy?

My bankruptcy clients have seen prices ranging from $30-$50. You should check with the local United States Trustee's office for a list of credit counseling agency that are approved in your judicial district.

How do you start an honest and reliable debt consolidation and counseling company?

If really serious, you would learn an enourmous amount of info as to how collection agencies work by working for one as a debt collector. If not, first step would be to talk to an Attorney; you would probaly have to retain one in some manner anyway. Look at your states regs. Looking into the licence requirements will give you a start. I would assume you will have to be bonded and have a net worth of x amount of dollars. Collection agencies work in that manner. Basically, fifty states means fifty different laws and regs. to be abreast on. That means training for employees and employees who are capable of dealing with people who are not happy; must be thick-skinned.

What will happen if you drop out of a consumer credit counseling program?

I dropped out of consumer credit counseling years ago, and it was not a good experience. The credit cards that I had would not re-open my accounts and my credit report had a negative comment regarding "Consumer Credit Counselors", which is a red flag to any creditor that you needed assistance with maintaining your finances. Also, depending upon who your creditors are they will cancel the arrangements made with consumer credit counselors and go back to the original terms and agreement of your contract, along with any previous balances you had already occurred prior to signing up with a counseling service. My suggestion is if you start counseling, finish counseling.

Should you get credit counseling?

If you are living paycheck to paycheck, worried about debt collectors, or can't seem to develop a workable budget, you may be considering a consumer credit counseling service. Your creditors may be willing to accept reduced payments if you enter a debt repayment plan with a reputable credit counseling service. Choosing whether or not to use one of these services and choosing which agency to work with can be difficult, so here are some tips on how to approach this decision.

If you want to work with a credit counseling agency, interview several. Here are some good questions to ask:

  • What services do you offer?
  • Do you have educational materials? If so, will you send them to me? Are they free?
  • Can I access them on the Internet?
  • In addition to helping me solve my immediate problem, will you help me develop a plan for avoiding problems in the future?
  • What are your fees? Do I have to pay anything before you can help me? Are there monthly fees? What's the basis for the fees?
  • What is the source of your funding?
  • Will I have a formal written agreement or contract with you?
  • How soon can you take my case?
  • Who regulates, oversees and/or licenses your agency? Is your agency audited?
  • Will I work with one counselor or several?
  • What are the qualifications of your counselors? Are they accredited or certified? If not, how are they trained?
  • What assurance do I have that information about me (including my address and phone number) will be kept confidential?
  • How much do I have to owe to use your services?
  • How do you determine the amount of my payment? What happens if this is more than I can afford?
  • How does your debt repayment plan work? How will I know my creditors have received payments? Is client money put in a separate account from operating funds? How often can I get status reports on my accounts? Can I get access to my accounts online or by phone?
  • Can you get my creditors to lower or eliminate interest and finance charges or waive late fees?
  • Is a debt repayment plan my only option?
  • What if I can't maintain the agreed-upon plan?
  • What debts will be excluded from the debt repayment plan?
  • Will you help me plan for payment of these debts?
  • Who will help me if I have problems with my accounts or creditors?
  • How secure is the information I provide to you?

You might wish to check with your state Attorney General, local consumer protection agency, and the Better Business Bureau to find out if consumers have filed complaints about the provider you are considering. Any reputable credit counseling agency should send you free information about itself and the services it provides without requiring you to provide any details about your situation. If not, consider that a red flag and go elsewhere for help.

Be careful before choosing Consumer Credit Counseling. Research this option using the internet and verify everything. CCC companies have gotten a very bad name in recent years based on changes in their industry. Credit counseling was originally started by the credit card companies themselves as an alternative means for collecting their debt from consumers. These companies typically never reduce the amount owed to their participants, sometimes renegotiating late fees and over-the-limit charges. This is the "savings" that they advertise. According to NationalDebtRelief, "the success rate of debt management plans is about 20% to 26%." They also go on to recommend considering debt consolidation loans and Chapter 7 bankruptcies, citing their "better completion rates."

It is also important to note that when filing for bankruptcy, whether Chapter 7 or Chapter 13, that you are required to provide a certificate showing that you received credit counseling from an agency approved by the U.S. Trustee's office within the 180-day period before you file for bankruptcy.

What does Christian Consumer Credit Counseling provide?

It is a process that involves offering education to consumers about how to avoid incurring debts that cannot be repaid through establishing an effective Debt Management Plan and Budget.

What is debt consolidation credit counseling?

== == == == * A debt consolidation loan is a loan you get to pay off multiple loans or lines of credit. Debt consolidation loans are useful when you have varying amounts of debt on varying items (car loan, credit cards, medical bills, etc.). The idea is to get a loan at a fixed and low interest rate to pay off your varying debts. It typically lessens the total amount of money you end up paying. Credit counseling, also known as as debt management plan is another solution to handle debt that is spiraling out of control. Reputable credit counselors actually offer a wide range of solutions based on your specific situation. They'll review your finances, advise you about budgeting, and devise a program to help you get out of debt. * When a lender loans money to payoff all your credit cards and other debt, you have one monthly bill which is paid the lender. Often these loans do not have a lower APR and can be as high as APR(Annual Percentage Rate)'s of 24 percent. Even if you do get a decent APR you are still in debt. The big mistake is people give up secured debt for unsecured debt. Most Debt Consolidation Loans are given in the form of home equity loans which means if you do not pay you lose your home. * A second way that credit counseling can be a "good" term is to actually mean counseling. Many credit reduction companies and private financial institutions offer credit counseling as a type of financial planning. Counseling can help figure out how much debt is owed and how to control debt in the future.

What is the fee for online credit counseling?

If seeking simply the credit counseling requirement needed to file for bankruptcy, some sites online offer the service for as little as $5. Yet professional and sincere credit help may cost you nothing. If an individual truly wants help reducing his or her debt, very many credit counseling firms are non-profit and offer such a service for free.

How does one get help getting out of debt?

If I had a problem with my finances I'd start out first by sorting through all my business papers and write down on one side of the paper everyone I owe and the amounts.

Then gather your information for income the money that comes in each month.

List all this information on another side of the paper. Total it to show what you have coming in so you know the starting point.

Now add all your expenses everything that is due now or later but money you must pay out each month. Total this and post it on your paper. Hopefully the income is a larger amount than the expenses. If not you have to adjust something to make it work.

You have the beginning to examine your finances. It's just the start but a start!

Look in your phone book and make an appointment with your bank they have people who specialize in helping people organize and if necessary make a loan that pays off your bills. Then you pay the bank back plus interest and you clear the bills.

The main thing now is NO MORE CREDIT CARDS so all you owe is the bank until you pay off the loan. Everyone must use a budget...a list of what you can spend and what you owe so you do not get into financial trouble.

It is not just the finances that it affects it affects your health and stresses you out. The quicker you get your business in order you will find out you can get by with less spending and do things at home that cuts down on your expenses. We see things on TV that makes us want many things but we must be strong and do without until we have the money to buy it. One last thing check with your Credit Bureau to see your credit rating. It's good to know how you stand with the people you do business with they grade you by how timely you pay your bills.

What services are provided by Consolidated Credit Counseling Services Inc?

The CCCS of Greater Dallas offers a wide variety of help and counseling for financiers in rough situations, such as bankruptcy and debt holes. The services offered includes financial counseling, bankruptcy services, credit report reviews, debt management plans, housing counseling, and more.

How can one contact a Christian Credit Counseling Service?

Christian Debt or Credit Counseling is provided by such companies as Christian Credit Counselors, Family Life Credit, Family Life Resources, and Christian Credit Counsel.