Debt counseling, also referred to as credit counseling, is a debt relief program that has traditionally been “sponsored” by the credit card companies. It is organized and facilitated by a non-profit organization that is a 3rd party, and they evaluate your budget to see if you qualify for reduced interest rates and monthly payments. If these agreements are approved by the credit card companies, you may obtain lower payments. However, your participation may be viewed as a “light” form of Chapter 13 bankruptcy due to its reported nature and credit report treatment while you are in the program. While this option may be right for some consumers, other debt relief options exist that may provide more benefit.
Can Debt Counseling Help You Recover Financially?
Debt counseling may be right for some consumers, but choosing the right management company is important. This is a highly regulated industry, and some participants have found that the company they entrusted the distribution of their monthly credit card payments failed to make them on time. If this occurs, you may lose approval of your debt management plan, placing you in a situation where your suspended interest accumulation resumes at a level higher than previously contained. This can be very problematic, and so it’s important you make an informed decision based on the availability of other debt relief options in addition to credit counseling.
It will take 30-60 months to complete a debt management plan, as estimated by the National Foundation for Credit Counseling. As noted previously, some creditors may report your participation in this program on your credit report. While this is not supposed to lower your FICO score per se, a banker or automobile finance representative may view this negatively. This can impact important credit decisions, so it’s important to obtain all the facts prior to making this potentially 5 year decision to enter credit counseling.
Helping People Just Like You Escape From Debt is Our Specialty!
Our goal is to be objective when we recommend debt relief options to those who seek us out for advice. Debt counseling sessions offered by Debt Support Center can help you obtain similar benefits as found through credit counseling meetings, such as help with budgeting and financial management principles. These can be conducted over the phone, or in our office should you choose. These sessions are meant to help you gain a grasp of your current budget, which will quickly help us see the best debt relief option based on your disposable income.
We at Debt Support Center greatly value our client’s privacy, and any information provided in our interactions will remain between the client and the company alone. This means that we never report your financial information to the credit bureaus, nor share it with any other party without your permission. Would you like to receive a complimentary evaluation today? Contact us now so we can help you pursue the financial relief you deserve.