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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.
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.
3.
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.
4.
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.
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.