Credit Counseling

Consumer Credit Counseling organizations work for your creditors.  Credit Counseling is really a form of "soft collection".

Credit Counseling organizations are paid by the creditors based upon how much they can get you to pay each month.  They receive anywhere from 8% to 15% of what you pay.

You may receive a reduction in your interest rate and monthly payments, however this is in exchange for a substantially extended term of payments, often lasting as long as 10 years.

More than 2 out of 3 of those who try Credit Counseling do not complete their programs because of the high total cost of the programs and because of the slow progress in reducing their debts.  The Credit Counseling industry is now under severe scrutiny by federal regulators due to this high failure rate.

Not all creditors participate in Credit Counseling programs.  With those you are on your own to resolve your debt.