Welcome, visitor! [ Login

Post an Ad

How Credit Counseling Works

Debt-Credit Consolidation April 9, 2024

 

When you meet with a credit counselor, you’ll be asked to provide information about your income, expenses, and debts. After analyzing and discussing this information with you, your counselor may recommend that you:

 

  • Continue to handle your finances on your own.
  • Participate in agency education classes.
  • Enroll in a debt-management/repayment plan.
  • Be referred to another organization for assistance.

 

If you decide to enroll in the debt-management/repayment plan, you will be asked to stop using your credit cards or incurring debt. The counseling agency will negotiate a repayment schedule with your creditors that will generally allow you to get out of debt in two to five years. You’ll make one monthly payment to the agency, which will then pay your creditors.

 

If you are concerned about the effect that credit counseling may have on your credit history, talk to your counselor about it. Some lenders may bring your account current and report it as being paid on time, as long as you stick with the program. Others may report that your account is being repaid through credit counseling or may even report your account as delinquent, both of which can look negative to future creditors. The fact that you met with a credit counselor will never appear on your credit report if you just get budgeting advice and do not choose to enter the debt management plan.

 

What you shouldn’t expect from a debt counselor is legal advice or detailed advice about filing for bankruptcy. For these, you should talk with an attorney.

 

No Tags

1110 total views, 1 today

  

  • WHAT TYPE OF DEBT COLLECTION PRACTICES ARE PROHIBITED?

    by on June 6, 2024 - 0 Comments

    WHAT TYPE OF DEBT COLLECTION PRACTICES ARE PROHIBITED?   Harassment Debt collectors may not harass, oppress, or abuse any person.  They may not:   *  use threats of violence or harm to the person, his/her property, or reputation;   * publish a list of consumers who refuse to pay their debts (except to  a credit […]

  • FAIR DEBT COLLECTION PRACTICES ACT

    by on June 2, 2024 - 0 Comments

    FAIR DEBT COLLECTION PRACTICES ACT   The federal law, the Fair Debt Collection Practices Act (“FDCPA”), protects consumers from abusive or harassing, false or misleading, and/or unfair practices of third party debt collectors or attorneys attempting to collect debts incurred for personal, family, or household purposes. Business or agricultural debts are not covered by the […]

  • Debt Collectors -Recovery Services - FL & AL

    by on June 26, 2024 - 0 Comments

    Entity Address Telephone CenterOne Debt Management Services LLC 6150 Omni Park Drive, Mobile, AL, 36609 (251) 639-7500 Medical Data Systems, Inc.  Medical Revenue Service 645 Walnut Street, Suite 5, Gadsden, AL, 35901 (256) 546-7099 Firstsource Financial Solutions, LLC 7715 NW 48th Street, Miami, FL, 33166 (305) 513-5500 Bayview Loan Servicing, LLC 4425 Ponce De Leon […]

  • Personal Financial Management Course (Debtor Education) Providers :Alabama Southern

    by on July 2, 2024 - 0 Comments

    List of  Personal Financial Management Course (Debtor Education) Providers #02 Certificate Class 713 Preston Place Grapevine, Texas 76051 Toll Free:  (888) 533-3423 Phone:     (817) 533-3423 Fax:          (817) 533-3423 Web: www.jjandpartners.com Allen Credit and Debt Counseling Agency 195 Brook Street E Wessington, SD 57381 Toll free:   (888) 415-8173 Phone:     (605) 458-2500 Fax:         (605) 458-2506 Web: www.acdcas.com Alliance Credit Counseling, Inc. […]

  • Debt Collectors -Recovery Services

    by on June 13, 2024 - 0 Comments

    Entity Address Telephone A.C.B. American, Inc. 4351 Winston Avenue, Covington, KY, 41015 (859) 261-8745 Advanced Collection Services LTD Mastercheck 55 Whiting Street 2A, Plainville, CT, 06062 860-793-2255 Advanced Collection Services LTD Mastercheck 55 Whiting Street 2A, Plainville, CT, 06062 860-793-2255 Affiliated Group, Inc., The  Affiliated Credit Services 3055 41st Street NW, Suite 100, Rochester, MN, […]