Consumer Credit Counseling Agencies Facilitate Debt Repayment
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Consumer Credit Counseling Agencies Facilitate Debt Repayment
If you are facing financial difficulty, a consumer credit counseling agency can help restructure your payments so you can pay them off easier. That may mean consolidating your payments, or getting your creditors to lower the minimum payment or restructure the payment cycle to help you repay the debt more comfortably.
Things To Know
- The agency will work with your creditors.
- Clients should be completely honest about their financial situations.
- The agency negotiates favorable repayment terms for you.
The agency will contact the creditors, explain your situation, and establish a repayment program that benefits everyone.
The agency starts with you
The agency reviews your income, outstanding debts, and other financial needs. It is important for clients to be completely honest about their financial situations. The more the counselors know, the more they can help.
The agency then works with your creditors
The agency counselor then turns to the client’s creditors to negotiate more favorable repayment terms. Often, creditors will accept smaller minimum payments and eliminate late fees. Sometimes they will waive a portion of any accumulated interest.
The various payments are then bundled into a single monthly amount and presented to the client. These payments are made to the consumer credit counseling agency, which in turn pays the creditors.