My opinion, I wouldn't trust a credit counseling service to mow my lawn.
Why pay someone to do what you can do yourself for the cost of postage and your time?
Save your money and learn how to clean up your credit yourself.
I've included a link, even if you decide to use a credit counseling service, just do some reading and learn your rights.
edited to add: If you use a service, check them out "thoroughly" before signing your money away to them. If they are on the shady side of credit counseling, you may find that your problems are only starting when you sign up with them.
2006-06-27 17:08:28
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answer #1
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answered by echo 7
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Echo's description is accurate.
What these companies do is try and work with your creditors on a payment plan, and to help reduce the debt you owe. Claims that they can eliminate 50% of your debt are lies! So are claims of eliminating interest and late fees. At best they usually get 20% reductions to your debt. But in exchange, your credit will be ruined because the report will now show the bill paid at a reduced amount. You may also be liable for additional taxes if the excused debt is more then $600 and the creditor files a 1099 form with the IRS.
The advantage is that they can combime all of your debts into one payment. That may help some people out, as it's similar to a debt consolidation loan.
The sad part is people should not need to mess with credit counseling agencies. Credit card companies should be more willing to work with debtors by lowering interest rates, excusing a portion of the principle, and working out a reasonable payment plan.
Whichever way you go, your credit will be ruined.
2006-06-29 09:46:19
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answer #2
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answered by Anonymous
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Here is the truth!
Consumer Credit Counseling companies are the best and the most honest ones. Look for a good company affiliated with that name. They work payment plans with your creditors so you can repay them.
There are other companies out there that claim to repair your credit but they actually do is make your credit even worst that way your creditors will settle for a lesser amount of what you owe. They get a monetary compensation for this transactions and you end up with bad credit. smaller debt but definitely very bad credit.
If you need help to make your payments the CCC companies can help you but if you are just worried about your credit you can do it on your own. All you need to do is get educated on how to do it. Here is an article from www.ftc.gov that talks about how you can fix your credit on your own without any credit repair companies.
For more information on this article visit to www.Jrealestate.blogspot.com and read the article titled "Credit clinics, can they really help?". You will find it in the December 2005 issue.
2006-06-28 09:11:01
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answer #3
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answered by SCCRealEstateUNCENSORED.com 3
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what they do is take all that you owe to either credit cards,store cards,etc.. & caluate how much you owe.then they work with your creditors to set a monthly fee.and the counseling agent will tell you how much to pay each month which is a set amount for all your debt.example,if you owe $2500 in all to your creditors,your monthly payment will be like $200-250 a month. look for a non-profit credit counseling.they make no money from you.be careful,some are scams.i hope that helps
2006-06-28 07:59:32
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answer #4
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answered by mtf1120 3
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well they help you pay off all of you bill's and some times they help you settle for less then what you owe, instead of having bills all over the place they give you one low monthly payment i am a loan consultant and i deal with people's credit all day so here try this out call these people i send alot of my clients to them to repair credit Care One Credt Counseling 1800-498-0965 try them oh yeah and gimme 10 points!!!!!!!!! lol
2006-06-27 17:08:15
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answer #5
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answered by Greeny 2
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