How Does Credit Counseling Work?
November 16th, 2009 | 
Author: Is it a good option of eliminating credit card debt?
Is it good? There are two kinds. One is affiliated with the United Way, it’s usually called Consumer Credit Counseling Services. These people are good. They negotiate better rates with your creditors. You will have a flag on all your accounts so you can’t use them but you generally won’t lose them. You pay them a fixed amount – by money order – and they disburse the funds to the creditors. Look out for the guys who claim they’ll "fix" your credit by just letting it go to like 90 days past due and then negotiating a settlement. They will wreck your rating, and worse, the amount between what you owe and what you settled for will be reported to the IRS as "income" so you’ll get it at tax time.
Posted in eliminate credit debt
Is it good? There are two kinds. One is affiliated with the United Way, it’s usually called Consumer Credit Counseling Services. These people are good. They negotiate better rates with your creditors. You will have a flag on all your accounts so you can’t use them but you generally won’t lose them. You pay them a fixed amount – by money order – and they disburse the funds to the creditors. Look out for the guys who claim they’ll "fix" your credit by just letting it go to like 90 days past due and then negotiating a settlement. They will wreck your rating, and worse, the amount between what you owe and what you settled for will be reported to the IRS as "income" so you’ll get it at tax time.
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