Consumer Credit Counseling
Be cautious of credit counseling companies!
Often, consumer credit counseling involves negotiating with creditors in order to minimize payments and interest rates. Yes, it can be effective â€“ but only for clients who are able to pay off the entire debt. Unlike debt consolidation, this process does not minimize the amount of debt.
Many credit counseling services claim to be non-profit organizations; however, a little-known secret is that many receive payments from creditors. In other words, many credit counseling services are clandestine collection agencies that can actually hinder your ability to get out of debt â€“ especially if the creditors who pay them "work with you" by charging you a higher interest rate. For organizations like this, the goal is not to minimize your debt; instead, their goal is to prolong it.
Beware of credit counseling services that:
- Charge high, up-front or monthly fees for enrolling in their program
- Pressure you to make "voluntary contributions"
- Refuse to send you free information about the services they provide until you provide your personal credit information
- Try to enroll you in a debt management plan (DMP)* before they have reviewed your financial situation
Instead, trust Federal Debt Reliefs to provide consumer credit counseling that is ethical and honest, resulting in the most favorable outcome possible. Our debt counselors never ask for your personal information until you are ready to begin receiving our services; and, they make sure you thoroughly understand the process prior to getting started. Our program is affordable, manageable, and can easily work into your existing credit card budget.
For more information, We can be reached through the contact form above.
*A DMP is an arrangement with unsecured creditors that prolongs the period during which the debt can be paid. This resulting in smaller monthly payments, but far higher interest rates.