Does Credit Counseling Work – having a difficulty meeting their financial obligations, then counseling is recommended. These credit companies are professional services, such as the CCCS. They help consumers create a repayment plan to put them back on track and they can negotiate a new monthly payment with the creditors.
What does the CCCS do? They are called the Consumer Credit Counseling Service and are located in most states. There are many companies that have similar services for free. A person who might have large debts may need continuing help to develop and manage a realistic budget.
However, do these programs work? Some people suggest that the programs are a scam. With consumer debt approaching $2 trillion and millions of Americans are in serious financial trouble, many people turn for a quick fix, not realizing that most services cost money. It’s a fast growing industry that is prone to abuse.
In fact, the U.S. Senate investigation has documented and filed several complaints relating to recent scams. Legitimate consulting services do help people with their debt problems. It’s a long process that you might otherwise not have the time for if you do it on your own.
A proper counseling program will provide you with someone who will work as a mediator between the debtor and the creditor. They will negotiate the total amount due to a lower amount and have the late fees waived. As long as a person owes money, their score will take a hit.