Consumer credit counseling has been one of the many methods that individuals have used to erase debts as assistance plans can aid troubled consumers through one-on-one consultation with an approved credit counselor so that troubles may be addressed and goals set within the financial life of a particular consumer. Obviously, there are many basic methods that have been used for debt relief, but credit counseling can address a consumer’s particular situation so that a plan is drawn up that includes specifics which will be helpful to particular consumers in a difficult financial position.
First, consumers who are looking for credit counseling opportunities to help erase debts and set future financial goals will need to research these credit counseling organizations to avoid any fraudulent companies or scams, as well as, there are some credit counseling agencies that simply are better than others when it comes to helping men and women address their debt issues. Credit counseling agencies should be approved by not only reputable organizations, hold accreditation, offer upfront pricing breakdowns and fee structures, but running an online search should yield positive reviews of the credit counseling organization from past clients who have successfully completed these counseling programs.
As an example, credit counseling agencies that may be scams will usually ask for fees to be paid upfront or will offer very little personal assistance that can actually be beneficial for a client’s particular situation. While there are new rules set in place by the FTC that stops certain credit counseling agencies from collecting fees up front, reputable organizations will usually only require that a consumer pay a fee for their services after assistance has been given.
Understandably, consumers who also need a debt management plan through a credit counseling agency will benefit from a reputable organization as these plans require that a consumer make payments to their credit counseling organization who then turns and pays various creditors under an agreed upon repayment schedule. In the past, some fraudulent companies have suggested a debt management plan for a consumer, which is not always necessary, but they would collect payments from the consumer and either pass on a small percentage to creditors or not even make payments at all, which would obviously do damage to anyone’s credit score who fell victim to these companies.
However, credit counseling services are available across the nation to assist consumers with their debt relief needs and, even if a consumer is in a bad credit position or simply wants to set financial goals for their future, these companies can be a great tool if used properly. Obviously, a consumer can find a reputable credit counseling agency, get great advice on either erasing debt or setting future financial goals, but it falls into the lap of the consumer to actually follow through with a credit counseling organization’s advice so that a consumer can truly improve their financial life in the long run.