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Questions and StoriesCategory: Questions📈What Do Consumer Credit Counseling Services Have to Offer?
Shane Collins asked 1 month ago

📈What Do Consumer Credit Counseling Services Have to Offer?

It has become increasingly hard to live life without having some sort of debt. Carrying debt has become more common than being debt free and sometimes that can be a heavy burden to carry. Sources of debt can be varied from student loans right up to normal credit card expenses. However life can happen and financial situations can change at any given moment due to unforeseen expenses or what ever the case may be making it very hard to pay debt and maintain livelihoods. Taking a consolidation loan may seem like your only option however that is not the case. Contacting a consumer credit counseling service will for sure make more options available to you such as:

  1. A evaluation of current financial situation.
  2. A detailed review of income, assets and expenses.
  3. Provide personalized options to pay debt based on your goals and what you can afford.

What to look for when looking for a consumer debt counseling service to assist please pay attention to the following:

  • Must be a non-profit organization.
  • It is better if the organization has been in business for a few years.
  • The organization must have a state license.
  • The organization should not ask for or charge minimum fees.
  • the organization must have certified and registered counselors.
  • The organization must be members of AICCCA or either NFCC.

Debt has most certainly become a problem for many around the globe and I really feel that seeking help from consumer credit counseling services is a much better option as to consolidation loans seeing as it may worsen the already existing financial problem if yet another loan gets approved.
I am must also add that I have been fortunate enough to not have had to much troubles with debt and have had no need to make use of the above mentioned service. However if I would face a challenge like mentioned above I would rather make use of debt counseling services before making more debt by taking a consolidation loan.
Is there anything I missed what else does consumer counseling services offer that I have not mentioned yet? What would you choose to do see a credit counseling service or take out a consolidation loan?

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2 Answers
Ahmad Khasan answered 1 month ago

Hi, Shane.
 
What a great and relevant topic. This is the first time I heard such service. I have several questions:
 

  1. If they are non-profit entities, what kind of obligations we have from them?
  2. At best, what can they do to help a person with a huge debt?
  3. In your knowledge, does this service only available in your country? Or this is a service that has been growing worldwide?

 
Thank you.

Shane Collins replied 1 month ago

Hi Ahmad I see I have made some small mistake not all consumer credit counseling services have to be non-profit however some of these entities are non-profit.
These services offer another way to help consumers that have a large amount of debt pay it back a way more suited to your pocket. A review of your current financial situation will take place there after a payment plan to pay the debt off will be discussed with you.
For example say your debt is an amount of 12 000 what ever your money currency if you go seek help from these entities your amount owed where you got debt from may be cut in half say to 6000 maybe less or more and then from there a plan to pay the remainder of the debt will be discussed with you and that will normally be an ex amount each month that then will trough the entity be paid to whom ever is owed.
Then to answer the third question you have yes this service is available worldwide as far as I know.

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Steinar Kloverod answered 4 weeks ago

It was interesting to read your post about consumer credit counseling.  To answer your questions first, I have to say that I would of course see a credit counselling service before i got a new loan to cover older debt.
I wonder if the service you are talking about is private or run by the authorities.   Is it a free service in your country or do you have to pay for it.  In Norway we have such a service too.  You can get it from law firms and the municipality authorities have also a kind of debt advicement.  If you wish to use a law firm it is very expensive and most people cannot afford it.  Such service from the municipality authorities are free, but you have to be on a kind of waiting list which take time to get this service.  It is not every one that wish to have this help from the authorities that gets it.  It depends of your income and debt situation.
The conclusion here in Norway will be that it should be such a service you talk about here too.

Shane Collins replied 4 weeks ago

Hi Mr. Steinar so nice to hear from you. To answer your question some of these credit relief companies are in fact run privately however there are some that are run by government to offer relief from debt. There are also some credit counseling services that are free for people that can not afford the service however if it is within budget a service fee could be added. I am not sure about a waiting list but I know a few people that have used such a service and the only wait period they had was the wait for the financial review shortly after that the process was underway.

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