Do credit counseling services really get you out of credit card debt,and how do they affect your credit rating
Answer:
It depends on how bad you are now.
Consolidating means creating a whole new loan for a longer period of time. This would hopefully lower your payments enough so you can get back on track, in this case it might SAVE your credit score.
A credit counselor will give you some tools and suggestions for reducing your payments, just keep an eye on what the % are, you want it to be lower than what you pay now.
However, debt consolidation can be nothing more than a way of putting off the evitable. It really does little to correct the problem. That's why many people come back to debt negotiation as a way of getting out of their financial problems and starting fresh start.
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I use to work at CCCS. They will mess u up. There payments are late, and if the payments come in late for 3 months they take you off the plan. As far as credit. It shows in in consumer counseling. That is as bad as bankruptcy.
Some agencies can help you find assistance with debt consolidation, depending on your circumstances. Bewere of credit "fix" scams though. They say they'll fix your credit and stop payments for a fee. What they really do is bombard creditors with requests to verify accounts, which by law companies have to do if you contest a bill. But it doesn't really go away. Once contested they have so much time to prove the debt is legitimate (30 days). If it is, you have so much time respond, with payment arrangemetns, etc, otherwise you're right back where you started, and the "fixers" are gone with your money.
If it is a true credit counseling service , then yes it can help you! Credit counseling services work for you to lower the APR's on your credit cards, stop the late payment fees and over limit charges, get you a fixed monthly payment that pays all your revolving credit (i.e.- any loan that isn't secured, a mortgage loan, car payment, etc. would not be included) Usually the payment will be significantly less than all the minimum payments added together that you've been making. Also they give you a payment plan - you can see the end of the madness- most plans, depending on your debt, are from 1.5 to 3 years. Your credit is not affected in a bad way - it WILL show that you are in credit couseling program WHILE you are in it - afterwards, when everything is paid off- all accounts will show in good standing. All the accounts that you place in the program are put into a freeze, you wont be able to use them anymore and as soon as they are paid off they willl be closed , that is part of the agreement with the creditors. While in the program you will not be able to recieve any other revolving credit or use the ones you have(unless you dont include them in the program) - and usually have to wait 6-12 months before purchasing a home or car.(to show you asre serious about clearing your credit) Most services dont charge much to provide for you - some will just ask that you make one extra payment after you are paid up as a donation to their program. If you are in over your head with credit card debt - this is the way to go! It can save you alot of money in the long run.
Run away from them. They do not nagotiate they hold your money until companys lower the dollar amount and then pay and keep the difference.
yes.they do
Credit Counseling Programs
http://www.complete-debt-info.com/catego.
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