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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 ________.
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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.
2.
A consumer credit counseling agency can help you get out of debt by working closely with your _______.
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Creditors. A major function of a consumer credit counseling agency is to serve as a liaison between you and your creditors.
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.
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.
5.
A big advantage of working with a consumer credit counseling agency is that your plan continues even if you miss a payment.
Choose wisely. There is only one correct answer.
False. When you work with a consumer credit counseling agency and miss a payment, creditors may start collection actions.