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Basics Beginner: Consumer Credit Counseling Agencies

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1.
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.
2.
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.
3.
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.
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.
Consumer credit counseling agencies receive most of their funds from _______.
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Creditors. Consumer credit counseling agencies receive most of their funds from creditors, who return a small percentage of the funds collected to the agencies.