Credit Counseling Services

When high interest rates and penalties are making it difficult for you to pay off your debts, a consumer credit counseling service may be helpful. In addition to helping you develop and stick to a realistic budget, they can often negotiate with your creditors for more favorable terms (interest rates and waved penalties).

Sometimes credit card companies are more likely to respond to such requests when made by a consumer credit organization – it tells them you are serious, are seeking help, and are getting advice on how to meet your obligations. However, there is no guarantee a credit card company will agree to this, and they are not obligated to do so.

Be cautious and learn what fees the credit counseling services charges, and also who is responsible if you make payments to them but they do not remit your payments on time or they underpay a creditor, resulting in fees or penalties that you will owe.


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