What is credit-counseling?

Question

any info would be of help

Answer 1

Here are some souces which would help you:

What is credit-counseling service?
http://www.askaquery.com/Answers/qn492.html

How to Hire a Debt Counselor?
http://www.askaquery.com/Answers/qn1584.html

Answer 2

Credit counseling is normally a service provided by a Company/Association that assists consumers in understanding their debt, how they can get it under control and steps to follow that will help them get their debts paid off in a reasonable amount of time without going bankrupt.

Sometimes but not always, a Credit Counselor will recommend that the client consider having the Agent work out a plan that will address a debt problem by approaching the creditors on behalf of the individual and arranging a suitable and more manageable repayment schedule. Once all creditors are appraoched and manageable amounts are determined to be paid back the Agent will then combine all payments into one single payment which the consumer will be responsible for. Normally, this more manageable payment is made directly to the Counselor who then provides it to the debtors. The Counselor will have built in a fee which the organization will receive for being the go between. Despite the fact that the word "Non Profit" is often times used with such an Agency, many times this fee still exists. Review ALL aspects of any debt reorganization to ensure all aspects are fully understood and agreed to.

If at any time the consumer fails to meet this new obligation and does not pay to the Credit Counsellor as agreed upon, the Counsellor will possibly recommend that the client review his/her situation and if warranted, Bankruptcy will be recommended. This however, is a last resort and any Credit Counsellor should attempt to avoid this scenario where ever possible.

Credit Counseling is usually a very effective means of paying off debts and avoiding bankruptcy, provided the program is adhered to. As in all things however, credentials and background should be checked to ensure the Counselor service is actually going to be beneficial and not more of a problem than is needed.

Answer 3

Credit counselling is an option an individual chooses when his/her personal finances get out of their control. It is typically viewed as better than bankruptcy. Depending upon your circumstances, this may or may not be true.

Credit counselors will sit down with you to review finances and set up a budget to which you will need to adhere. They will act as your advocate in dealing with your creditors. This is where the differences begin...

Predatory
- Typically for-profit (could be non-profit)
- Charge money for services
- Focus on settlement rather than repayment
- Promise to "Erase Credit Problems"

Virtuous
- Don't charge for services
- Non-profit
- Focus on reducing interest rates and payment amounts with creditors
- Ideally, a member of Better Business Bureau

Answer 4

Credit counseling, helps you with a budget. Some can offer lower interest payments and help you get out of debt sooner. Rule of thumb, if you don't have the cash on hand, don't buy it. Credit card companies have freely handed out credit cards and are the main contributors in placing so many Americans in a debt they are unable to get out of. Get help, get counseling.