Credit Counseling Services

Reuters, debt industry advocates, and Credit Debt USA believes that debt settlement has surpassed credit counseling services and agencies for a variety of practical reasons. At one time credit counseling was the only feasible alternative to bankruptcy. Due to lower payments, and narrowed program lengths, consumer trends clearly show an uprising in the debt settlement industry when compared to credit counseling services.

More and more people are turning away from credit counseling to help their debt problems. Most credit counseling services in the past and present have converted into debt settlement companies. Consumers don't like the fact that credit counseling services charge upfront fees, therefore making debt settlement much more enticing to the consumer. Like any service, or industry not all credit counseling agencies are created equal.

Aside from basic money management recommendations, credit counseling companies negotiate with your creditors to do away with late fees, extend the term of your loan or credit extension, and reduce your interest rates.

If qualified, the credit counseling agency will recommend a debt management plan. Qualifications are based on state of residency as well as debt amount, and the creditor(s) or lender(s) involved.

Credit counseling like any debt service affects your credit score, sometimes minimally others more. Each individual credit file and credit history is different. So to spare any ambiguous statements regarding your credit score just know that every person’s credit score is affected differently and must be reviewed personally.