Credit Counseling Services – Does This Debt Relief Option Makes Sense For You?

Credit Counseling Services Does This Debt Relief Option Makes Sense For You

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The number two scam that has been used a lot lately is the "save 60% in just seconds" credit card counseling sales pitch. The first imbroglio with this is that even if the credit counseling agency is valid , they solely represent the credit card companies so they can only help you out with your credit cards. When you take this into account with the fact that all that they will be able to spare you is money out of the interest you can observe you will not be saving enough money to help you get back on your feet.

At the end of the day the genuine dilemma with the credit counseling agencies is that even if they are not a scam, they are in for all practical purposes looking out for the credit card companies best interests. This is how the credit counseling agencies work, first they work with credit card companies and get them to agree to lower interest rates in exchange for an contract that outlines regular monthly payments set up by the credit counseling agency. Why do credit card companies approve to do this? The greatest reason is to keep you out of the hands of bankruptcy attorneys. Bankruptcy laws are setup to get the citizens out of debt, not interest, debt.

Only a bankruptcy can get you out of your liability , this is why the credit card companies and credit counseling agencies wish to make bankruptcy feel so evil. Nobody wants to file bankruptcy, but there comes a period when you realize that you can no longer afford or ever pay off the debt that you have accumulated. When you get to this point a credit counseling agency may sound like a true substitute , but chances are you will just end up in the identical plight until you resolve to file a bankruptcy and relieve your financial trouble .

They are basically collection agencies working for and under the control of the major credit card companies. The most any of these agencies will be able to help you do is lower your interest rates a little, and predominantly only with respect to credit cards. This will only work if the credit card companies are willing to participate. If you absolutely need to get rid of debt credit counseling agencies are not the answer. By the time you need to release the financial pressures of your debt, knocking a small bit of interest off of your credit cards is not going to be enough.

Bankruptcy on the other hand can actually get rid of debt; this is why credit-counseling agencies despise bankruptcy. The credit card companies and the counseling agencies identify that bankruptcy can get you out from under their control . If you cant pay off your bills and are looking at using a consumer counseling arrangement to get out of liability , you should at least find a bankruptcy attorney that gives free debt consultations and see how bankruptcy works.

In some cases the credit counseling that run ads on TV and more continually on the Internet are scams. Be careful when an ad offers to make you debt free without having to file bankruptcy. More often than not the old saying that "nothing in life is free" holds correct , and the victims of these scams send these scam organizations their money and never get anything in exchange .

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