There are consumers who have been facing a difficult financial time and have considered credit counseling assistance for debt relief opportunities, but many of these individuals have been unsure of the benefits which credit counseling can offer and often fear that using a credit counseling service will do damage to their credit score. There are advisers who have had to address this issue and attempted to ease the concerns of consumers who were wary of seeking credit counseling assistance.
In the past, consumers who have had a difficult time making their payments were able to use credit counseling agencies as a way to review their financial situation, formulate repayment plans, meet certain financial goals, and some were even able to use the services as a way to lower costs associated with certain debts. While organizations like nonprofit credit counseling agencies can be quite popular among consumers, there are still some fraudulent companies which may be seeking to take advantage of individuals in a bad financial position.
Advisers state that credit counseling services do not hurt a consumer’s credit score unless they use the services of a credit counseling agency who is looking to take advantage of individuals in a poor financial predicament. Obviously, there have been some fraudulent credit counseling companies who have simply collected money from consumers and either failed to pay creditors or created a great deal of difficulty for consumers by charging excessive fees and fines.
Also, credit counseling agencies and debt relief services are quite different in terms of what they offer a consumer, and individuals who are simply looking for assistance when it comes to gaining control of their personal financial life often choose nonprofit credit counseling agencies, as debt relief services usually set up repayment plans for consumers who make payments to these companies and a debt relief organization will then pass out percentages of these payments to various creditors.
Yet, no matter what route a consumer takes, research must be done and many financial advisers often suggest that consumers make sure that a credit counseling agency is accredited, will offer upfront disclosure about prices, will offer one-on-one service and assistance, and obviously looking for reviews on particular companies is vital as past customers or organizations may be able to give feedback on a particular nonprofit credit counseling agency so that more consumers may be able to avoid dealing with a fraudulent counseling organization.