Credit Counseling Programs, many times referred to as debt consolidation programs are programs that take over the payments of your debts for you. The credit counseling company will ask each of your creditors to reduce their interest rates and stop charging late fees then they will set up a repayment program where you will be given a longer term to pay back your debts. The credit counseling company collects one payment from you monthly and then pays each of your creditors on your behalf according to the terms of your agreement. Facts about credit counseling companies: Credit counseling does not save you money. If fact they cost you more money over the long term as you will be paying interest and fees to them over a longer period of time. They only reduce the amount you have to pay to your creditors each month. Credit counseling companies are compensated by or even owned by your credit card company. Since both of these companies stand to make money from you so long as stay in debt their overall strategy and incentive is in question. Credit counseling programs have a severe negative impact on your credit report, similar to filing personal bankruptcy. Credit counseling programs have the highest failure rate in the debt relief industry. Many people realize that after 4 years of paying back their debts with another 3-4 years to go, that they have hardly paid off ANY of the principle debt. You loose control over your finances with credit counseling. It is difficult to determine which creditors are getting paid and how much or when your debts will be paid off completely. Credit counseling charges many fee's that they call Mandatory contributions If you miss payments in a credit counseling program they may drop you from their program, putting you back at square one . There is a far better solution to solving your debt problems. Instead of drawing out your payments over 7 years and paying the credit card companies more money we can negotiate a very low pay off of your debt, up to 50% of what you owe or more! Learn about our debt relief program, or contact us below:
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