Advantages and Disadvantages of Consumer Credit Counseling sets

Advantages and Disadvantages of Consumer Credit Counseling sets




Many of us are aware of the advantages of consumer credit counseling sets that are widely obtainable today. In addition to being able to estimate your current debts and financial condition, these sets would be able to come up with a debt elimination plan for you in order to either minimize or completely eliminate your debts within a time period. This would ultimately leave you a debt-free person, something that is extremely attractive especially to those who are deeply struggling with credit card debts for example.
 
Despite the many advantages of this service, it must be known that it also comes with a few cons of its own. Recognized as a different substitute to bankruptcy, consumer credit counseling would not work unless the payments are made on time and without delay, or you might be paying more instead of less. This could also average your credit rating getting affected. Although most of them claim to be non-profit, do take observe that many of these service agencies charge upfront fees (could be as much as a few thousand dollars). In addition to that, a lot of these agencies require you to pay a small amount of monthly fee (that accumulates to quite a large amount of money over a time period of 3 to 5 years).
 
Other disadvantages include the fact that if you struggle to pay monthly minimum payments for your credit cards, it is highly not recommended to take up this service as monthly payments tend to be higher (to offset the debt that has been acquired in addition). To conclude, make sure before you sign up for any credit consumer counseling, make sure you go by the details in the contract thoroughly and agree to the terms before signing. This is sincere advice from a former employee of consumer credit counseling.




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