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1.
Consumer credit counseling agencies receive most of their funds from _______.
Creditors. Consumer credit counseling agencies receive most of their funds from creditors, who return a small percentage of the funds collected to the agencies.
2.
A consumer credit counseling agency can help you get out of debt by working closely with your _______.
Creditors. A major function of a consumer credit counseling agency is to serve as a liaison between you and your creditors.
3.
Consumer credit counseling agencies typically offer free debt management plans to consumers.
False. The consumer sometimes pays a one-time fee in addition to a small monthly fee.
4.
One advantage of working with a consumer credit counseling agency is that it can prevent bankruptcy from appearing on your credit record.
True. Preventing the appearance of bankruptcy on your credit record is the biggest advantage of working with a consumer credit counseling agency.
5.
Consolidating your payments is a debt restructuring method sometimes used by credit counselors.
True. Consolidating your payments can make the task easier.