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Basics Beginner: Consumer Credit Counseling Agencies

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1.
A consumer credit counseling agency can help consolidate your payments.
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True. Payment consolidation is the consumer credit counseling agencys primary strategy.
2.
The primary purpose of a consumer credit counseling agency is to help consumers file for bankruptcy.
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False. The primary purpose of a consumer credit counseling agency is to help consumers pay off debts and stabilize their finances.
3.
A big advantage of working with a consumer credit counseling agency is that you pay only a small portion of your unsecured debts.
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False. If you agree to a consumer credit counseling agencys debt-management plan, you agree to pay all debts in full.
4.
Consumer credit counseling agencies typically offer free debt management plans to consumers.
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False. The consumer sometimes pays a one-time fee in addition to a small monthly fee.
5.
When a consumer participates in a debt management plan, creditors often ________.
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Eliminate late fees. Since you are working to repay the debt, creditors will often work with you and waive late-payment fees.