Debt and Credit Counseling Services

How Do They Work?

How do consumer debt and credit counseling services work? If you need help an agency will counsel you to help you work with your credit or debt. It is not credit repair. Although they may offer credit restoration as part of their service.

Typically, you enroll with a company that helps manage your debt and provides advice on how to better handle credit and debt. Your job is to pay the consumer debt and credit counseling services company and then they will pay your debts for you.

It is a move to help keep you on a specific budget and be accountable to someone that is helping you.

This can be an arrangement that lasts up to 4 years or so.

On your consumer credit report, there is usually a comment that says that the account is being paid through a counseling agency. 

FICO, the credit score provider says, "Frankly, we think consumers who participate in credit counseling shouldn't be punished in their FICO scores," says Craig Watts, public affairs senior manager for Fair Isaac Corp. This has been in effect since 1999.

As you can see, the comment will not affect your credit score but may affect your ability to get credit. If the lender is only looking at the score ... no problem... however, if they actually review your whole credit report, that may be a different issue.

A lender will see that and think that you need help managing your credit so will be less likely to want to extend you credit.

So since you are looking at this page, I have to guess that you are in need of some credit and debt solutions.
Mistake - you think the credit or debt issue will just go away. It usually doesn’t. So instead of just reading about it, go get a free consultation with a reputable credit counseling agency.

What you want to know are:
    •    What are your rights
    •    Types of debt management/debt reduction programs
    •    What about credit repair when you are done with the debt management program?

    •    Are you able to take care of the problem yourself or is it better handled by an expert?

That is why the best solution is to contact a debt and credit counseling services agency that can help you find solutions to your credit issues.

Now, at first you might act like an ostrich and bury your head in the ground. But you are not alone, so don’t hide. Get the help you need now and don’t let if drag out as it won’t disappear by itself.

Learn everything you can. It is so very important that you talk to someone about your different options. Find a company with a good reputation.

The next step after being debt free is to repair your credit. So clean up your debt then repair your credit.

Read more about Help With Credit Repair

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