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Basics Beginner: Consumer Credit Counseling Agencies

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1.
When a consumer participates in a debt management plan, creditors often ________.
Choose wisely. There is only one correct answer.
Eliminate late fees. Since you are working to repay the debt, creditors will often work with you and waive late-payment fees.
2.
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.
3.
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.
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.
The primary purpose of a consumer credit counseling agency is to help consumers file for bankruptcy.
Choose wisely. There is only one correct answer.
False. The primary purpose of a consumer credit counseling agency is to help consumers pay off debts and stabilize their finances.