Is Consumer Credit Counseling a Good Option?
In the past, Consumer Credit Counseling was once a generally effective program for helping consumers out of a financial hardship. Over the past 10 years, with such liberal lending practices, consumers have literally been able to become buried in credit card debt. In addition, credit card companies have reduced concessions paid to consumer credit counseling companies, and many credit card companies no longer participate and accept interest rate reduction proposals at all. What consumers need to understand about consumer credit counseling organizations is that they are actually working for your creditors! This may seem unbelievable, but it is true - and it is why you end up paying about two to three times more money to pay off your debts in Credit Counseling than in a properly structured Debt Settlement Program. Most Consumer Credit Counseling firms claim non-profit status and pretend to be independent. But in fact, these non-profits are funded and supported by the very people you owe money to; the credit card companies. That is why Consumer Credit Counseling companies do not negotiate your debts down. They merely try to come up with a plan to make sure you keep paying your credit card bills every single month. They want to force consumers to pay as much money as possible to your creditors. Sure, they may help lower your interest rate a few points, or eliminate a late payment or two, but the credit card companies are happy to do this when they know you are going to keep making payments that we could have negotiated away for pennies on the dollar.
Additionally, since you are repaying 100% of your debt balance plus interest charges (even after they are reduced by Consumer Credit Counseling), you could be in a Consumer Credit Counseling program for 5 to 8 years! Compare that to 3-4 years in our program.
In our program you can be out of debt twice as fast and for about 30-50% of what you'd be paying into a Credit Counseling Program. Why not become debt free as soon as possible, as opposed to being stuck in a consumer credit counseling program for several more years. Once you learn about the alternatives, the decision becomes easy for our clients to choose our Debt Settlement Program.
Furthermore, most Consumer Credit Counseling companies require you to make all of your payments to them and then they pay off your creditors. Recently, state Attorney Generals have sued some of the largest Consumer Credit Counseling firms because they were not actually passing on all the money they get to the credit card companies, they were keeping it themselves! In fact, the IRS has recently stopped granting non-profit status to credit counseling firms. Another fundamental problem with credit counseling programs is that they often will make the payments on your behalf late. This will void any agreement for reduced interest and generate collection calls from your creditors. Latest statistics show that credit counseling proved to be ineffective for more than 60% of those who enrolled.
If your goal is to become debt free in the shortest time possible, for as little cost as possible, we provide a very effective option with our program. We receive no payments from your creditors and we work 100% for you. Call us or complete our short online request form today!
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| Our Program | Debt Consolidation Loan | Credit Counseling | Minimum Payments |
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| Total Unsecured Debt | $30,000 | $30,000 | $30,000 | $30,000 |
| Months To Pay Off | 46 | 60 | 60 | 433 |
| Interest Paid | None | 12% | Variable | 18.99% |
| Monthly Payment | $498 | $667 | $855 | $900 |
| Total Cost | $22,950 | $40,040 | $51,300 | $80,619 |
