Christian Debt Recovery

Debt Cures Scam

June 11th, 2009 |

Author: Gavin

debt cures scam

Credit Coounselors

Everybody is scared of that four letter word, debt. Some people try to avoid it all costs, others take advantage of it every opportunity, others are drowning in thousands of dollars of credit card debt and don’t know what to do with themselves.

For those that are deep waters with their credit card debt and are looking for life preserver credit counseling may be their most viable option. Credit counseling has been around for some time now, back in 1951 a bunch of creditors got together and formed the National Foundation of Credit Counseling. The NFCC was basically established to educate consumers about the dangers of credit cards, to help consumers avoid bankruptcy and promote financial literacy. In credit counseling’s heyday there were over 1,000 credit counseling agencies, currently there are a little over 300 legit credit counseling agencies. Unfortunately there are some credit counseling scams out there so make sure you check an organization’s credentials before you enroll in credit counseling.

There are three primary benefits of credit counseling and they all revolve around getting into a Debt Management Plan. The DMP (as what it’s called in the credit counseling circles) is the integral piece of credit counseling, and the primary objective of a credit counselor. Once you enter in credit counseling and agree to enter a DMP you will reap the benefits of lower monthly payments. The reason that you get lower payments through credit counseling is that you stop making payments in individual creditors in a DMP, instead you make one consolidate payment to your consumer credit counseling agency. Typically your consolidated payment is going to be less than the sum of your individual monthly payments to each individual creditor. An experienced credit counselor is going to be very proficient in negotiating lower payments with your creditors.

The second benefit of credit counseling is that once you’re enrolled in credit counseling, you can use the DMP as an instrument to negotiate lower interest rates with your creditors. In the initial stages of the credit counseling process your credit counselor will analyze your income, expenses and debt. They will also take a hard look of at your credit card debt and that’s when they can start negotiating lower interest rates on your credit cards, obviously starting with the credit arid with the highest interest rate.

Basically by lowering your monthly payments and lower interest rates will lower your overall debt volume, which is the goal of credit counseling: ridding consumers of credit card debt. That’s a pretty awesome outcome for somebody who is drowning in credit card debt. I mean what else can you ask for? Getting your debt lowered by a significant amount is the name of the game, and you’re winning if you’re going with credit counseling.

This process is not a magic bullet and it does not happen overnight. Having to deal with a great deal of credit card debt and the process of ridding yourself of this debt is not an easy process; it takes diligence, discipline and a lot of hard work. So be prepared for a marathon and not a spring, the average credit counseling process takes around five to six years to finally rid a consumer of their credit card debt.

The third and primary benefit of credit counseling is the process that is sometimes referred to in the industry as “curing” or “re-aging”. This simply means the act of creditors agreeing to terms to bring an account from a delinquent status to a current status. For example if you’re 90 days late on a credit card and you enroll yourself in credit counseling, a credit counselor can negotiate an agreement between you and your creditor that if you make your monthly payments on time for the next three months the creditor will bring your account to current status. It won’t remove the disparaging 30, 60, and 90 day lattes on your account but it will bring your account from a delinquent status to a current status.

Getting out of credit card debt is huge ordeal that is going to force you to take a long, hard look in the mirror and is going to be a very tough road to finacial independence. Make sure you do research on what the best solution is going to be for you and your family.

About the Author

CCC is a consumer credit coulnseling agency whose credit counselors have been assisting the debt ridden consumer get on the road of financial independence for over 20 years.

If you or a loved one is finding themselves in the deep waters of credit card debt make sure you call a credit counseling agency to find out what your options are.

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