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Basics Beginner: Consumer Credit Counseling Agencies

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1.
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.
2.
A big advantage of working with a consumer credit counseling agency is that your plan continues even if you miss a payment.
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False. When you work with a consumer credit counseling agency and miss a payment, creditors may start collection actions.
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.
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.
5.
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.