Consumer Credit Counseling Agency Services
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Consumer Credit Counseling Agency Services
Generally, the first step in stabilizing someone’s finances is payment consolidation. Consumers hand over their bills to the agency. The agency then collects a single monthly payment from the client and divides it up among the various creditors.
Things To Know
- Agencies consolidate your payments and help you with your finances.
- Your credit may be reinstated after you’ve repaid your debts.
Services provided
Other services the agencies provide include the following:
- Budgeting
- Financial education
- Debt counseling
- Financial planning
Getting your credit restored
When you repay your debts by successfully completing the agency’s debt management program, department stores, credit card companies and other lenders will likely reinstate your credit. If you use the privilege responsibly, and consistently make your payments on time, you will rebuild your credit rating. Paying your debts, in part or in full, is always better than not paying them at all.
How these services are paid for
To pay for these services, the agencies may charge an up-front fee, ask for monthly payments, or both. Creditors will also pay the nonprofit organizations a small percentage of the funds they collect. Foundations and government agencies also provide funding.