If you have decided to seek credit counseling as a way to get relief from credit card debt, many credit card consolidation debt reduction agencies will be able to help you, but you must choose carefully. Agencies affiliated with one of the two major nonprofit credit counseling trade groups-National Foundation for Credit Counseling (NFCA) and Association of Independent Consumer Credit Counseling Agencies (AICCCA)-subscribe to “best practices” for non-profit consumer debt counseling services. You need to be able to trust the organization for your debt relief and just because it claims to be “nonprofit” does not make it trustworthy. Many consumer groups, attorney general offices and even the Internal Revenue Services are after a number of so-called nonprofit credit card debt relief agencies for their unfair practices and false promises. You can find a number of authentic firms that can help you with your credit issues, but you need to make sure that you know all the facts and ask a lot of questions before you get started with your credit counseling.

Facts about Credit Counseling

You might be surprised to learn that many of the available credit card counseling debt consolidation agencies are underwritten by banks and credit card companies. These agencies are ultimately helping the banks and credit companies so that’s why they are here to work with people to pay back their debt. Since the credit card debt is unsecured, the credit card companies know they will be last in line to receive money if a consumer files bankruptcy. The companies therefore encourage credit counseling and want their customers to enter into a DMP. You can find that credit companies enjoy when customers use a nonprofit credit card debt relief agency because the benefits are great like the “re-aged” payments and removed late payments from the credit report and the collection calls will stop.

Get This:
Getting out of debt can be a long and difficult process but it is one that you do not have to go through alone. There are groups out there who can help you. If you need some support with managing your debt, read about Debt Consolidation Care to find out more.

Credit Problems

You can find most DMPs last only five years. If you keep the payments going and stay on time for the whole five years, your debt will be paid off and your credit report is clean. If you miss payments during the five years, you will see a notation on your credit report and you will still have debt. Look for the rates that they will charge you and compare with other companies. Ask for references from consumers who have completed that particular program, and also inquire about the exact nature of the credit and financial counseling the firm offers. This way, you can help to weed out potential erroneous operators who just claim to be a good “nonprofit” credit card debt relief.

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To Your Financial Success
-Suze Fulton

Tags: Consumer Advocacy Organizations, Consumer Credit Counseling, credit card debt, credit card debt relief, Debt Issues, debt problems, Debt Relief Agencies, Independent Consumer Credit, Internal Revenue Services, Late Payments, National Foundation For Credit Counselin

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