What is Consumer Credit Counseling?
Consumer credit counseling services are developed and subsequently provided to assist everyday consumers who become overwhelmed with unsecured debt. In the United States as well as many other countries, the average consumer is susceptible to facing mounting debts due to excessive fees, over-consuming, over-leveraging and the fluctuation of interest rates.
As a result of these unfortunate events, consumer credit counseling is offered to renegotiate an individual’s debt in hopes of seeking lower interest rates and monthly payments. A fundamental aspect of consumer credit counseling is debt consolidation techniques; these services enable a consumer to agglomerate their debts into one package to ultimately lower and streamline their monthly payment obligations.
Why should I hire a Consumer Credit Counseling Agency?
Consumer credit counseling agencies or companies will attempt to make debt manageable for a consumer, while ultimately keeping these individuals out of bankruptcy. Consumer credit counseling services operate under tight regulations due to past discrepancies, where such agencies further crippled consumers as a result of hefty service fees.
That being said, if you or a loved one is facing mounting debts, it is recommended that you seek a consumer credit counseling service to renegotiate your payment obligations with your respective lenders, to lower your monthly rates through consolidation and to offer information and knowledge to prevent a similar situation from occurring in the future.
Consumer credit counseling services enable people to avoid bankruptcy and to diminish their debts without the constant harassment of creditors demanding repayment. When a debtor agrees to operate under the terms of a credit counseling service they contact the agent or representative of the CCS and not the individual in debt.
The largest benefit an individual in debt will receive from hiring a credit counseling service and the generic goal of all agencies, is that an individual’s debt, through the inclusion of a debt professional, will be free from repayment and the harassment that is typically found in these situations.
Types of Consumer Credit Counseling Agencies:
Consumer credit counseling agencies can operate under a profit or non-profit business model. In the vast majority of instances; however, the average consumer will find more success with a non-profit credit counseling service. The benefit of operating with a not-for-profit credit counseling service is found in decreased fees and the fact that creditors are more willing to offer lower interest rates through a non-profit intermediary.
This characteristic will of course fluctuate based on case by case circumstance, but is essential to evaluate consumer credit agencies based on the fees and rates they charge. It is highly recommended that you look for a consumer credit agency that possesses an excellent rating with the Better Business Bureau.