Credit Counseling Services

With the rising cost of living, and increasing interest rates people aren't sure where to look for debt help, especially when some so called "non-profit" credit counseling services pocket your first month's payment (upfront fee), which you assume is being applied to your debts, and calls it a "charitable contribution." Credit counseling services like this give the debt arbitration industry a bad name. Particularly when there's the Debt Settlement Company whom charge no upfront fee's, and can get you out of debt for less than the traditional credit counseling / debt management approach.

If you choose to speak with a credit counseling agency, you'll have to determine whether to use their services or glide solo. Credit counseling services really can't do anything for you that you couldn't do for yourself, logically at least. You could attempt to negotiate with your creditors to lower interest rates, extend loan terms (to catch up on late payments or make your payments more manageable), or remove late fees. In reality, the average person will probably not be as effective at doing this as a credit counselor, but it may be worth a shot before you enter into a debt repayment plan.

It may surprise you to learn that most credit counseling services are sponsored mainly by credit card companies. They are therefore motivated to encourage you to pay as much as possible on your credit card debt, even if it's more than you can afford. When you combine the aforementioned statements: Upfront Fee's with Credit Card Company Sponsorship this should throw a caution flag, as it does us.