Consumer credit counseling and debt consolidation services are often linked together. Generally speaking, consumer credit counseling involves individuals offering advice for improving credit and financial situations for individuals. If the information is legitimate and focused on helping a consumer get out of debt versus selling a consumer a service, this can be beneficial. Consumer credit counseling services often seek to lower interest rates or reduce fees for debtors by working with debtors’ creditors. They create debt management plans, which spell out ways for consumers to eliminate and rid themselves of debt. Sometimes, consumer credit counseling can really help individuals. These types of companies really can reduce debts—especially ones, which seem astronomical. During this process, creditors will often settle accounts / freeze accounts and accept the small portion of payment they receive. What’s the catch? Typically speaking, consumer credit counseling services charge large sums of money up front. When someone is already in debt this can be an issue. Plus, if consumer credit counseling services truly exist to aid individuals and be of help, why ...
