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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.
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.
3.
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.
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.
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.