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Basics Beginner: Consumer Credit Counseling Agencies

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1.
A big advantage of working with a consumer credit counseling agency is that you pay only a small portion of your unsecured debts.
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False. If you agree to a consumer credit counseling agencys debt-management plan, you agree to pay all debts in full.
2.
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.
3.
A consumer credit counseling agency can help consolidate your payments.
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True. Payment consolidation is the consumer credit counseling agencys primary strategy.
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.
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.