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Basics Beginner: Consumer Credit Counseling Agencies

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1.
Consumer credit counseling may be an alternative to filing for bankruptcy.
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True. The primary purpose of a consumer credit counseling agency is to help consumers pay off debts and stabilize their finances as an alternative to filing for bankruptcy.
2.
A consumer credit counseling agency generally may help you in all of the following ways except ________.
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File bankruptcy. A consumer credit counseling agency generally would not help you file bankruptcy.
3.
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.
4.
Consolidating your payments is a debt restructuring method sometimes used by credit counselors.
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True. Consolidating your payments can make the task easier.
5.
One advantage of working with a consumer credit counseling agency is that it can prevent bankruptcy from appearing on your credit record.
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True. Preventing the appearance of bankruptcy on your credit record is the biggest advantage of working with a consumer credit counseling agency.