Credit Counseling Lies Exposed – Shocking Truth Credit Counselors Don’t Want You to Know

You’re deeply in debt,Guest Posting wondering which way to turn. You’re confused, worried, and so stressed out you can’t think straight. What do you do?

Many people mistakenly turn to credit counselors. Often people struggling with serious debt make the dangerous assumption credit counselors are “the good guys” because they advertise being “not-for-profit”. Other times debtors lured by the debt management companies believe a common “half-truth” (out-right lie) promoted by the credit reporting agencies and credit counselors alike about how such debt consolidation programs affect your credit. Do you know how your credit may be affected?

Before we look at the truth behind these deceptive claims, let’s clear up the terminology and eliminate any confusion.

You see, “Consumer Credit Counseling Services” goes by many names… but ALL of these different names are really the same thing. These many names include credit counseling, CCCS, debt consolidation, debt consolidation plan, debt consolidation program, debt management plan, DMP, debt management program, and of course the infamous “Non-Profit” Credit Counseling Program.

The Truth About How Credit Counseling Affects Your Credit

While enrollment in Consumer Credit Counseling Services no longer affects your numerical credit “score”*, being enrolled in “CCCS” has a VERY DAMAGING impact on your credit “worthiness.” Credit worthiness is your ability to get a loan.

(* This is assuming that the credit counseling agency actually makes your payments on time – which is often NOT the case, as many, many people who have mistakenly enrolled in such debt management plans report.)

Why does enrollment have such a damaging affect on your credit worthiness?

· Statistics show it’s most likely that you will never complete your debt management plan and will most likely file bankruptcy instead.

· Some statistics report 7 out of 10 people who enroll into debt management plans fail to get out of debt.

Just ask ANY mortgage lender in the country…

When pulling your credit report, EVERY ACCOUNT included in your “debt management plan” is listed just as a bankruptcy would be, with a notice under each account saying something similar to:


This means big trouble for you. Lenders call this a “walking bankruptcy” because it’s a *major red flag* indicating you cannot manage your money and had to hire a third party to do it for you. Plus, you still owe the debt and are at a much greater risk of filing bankruptcy in the near future.

How will these negative credit entries affect you?

You will pay much more in fees and interest rates, if you are able to obtain credit at all, during the 4-7 years you are enrolled in your debt management program.

Who’s Hiding This Hurtful Half-Truth (Outright Lie) From You?

Credit counselors, your creditors & the credit reporting agencies are all in cahoots together. They all promote the half-truth that CCCS does not affect your credit score. The vast majority, including the credit reporting agency websites fail to mention the rest of the story.

While it is true that credit counseling has no affect on your credit score, that’s only half of the truth.


Because credit counseling has a major negative impact on your credit worthiness.

The Truth Regarding So-Called “Non-Profit” Credit Counselors

Don’t be fooled by the words “non-profit.” Claiming a debt management plan is “not-for-profit” is ridiculous, but it’s fooled many people into making poor money choices.

· The IRS has revoked the non-profit status of over 50% of the credi

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In Debt? – Read These Debt Consolidation Ideas

Credit counseling is favorable for all who look to progress in life. Especially in the United States where a lot of people are focused on changing their lives in a hurry,Guest Posting someone needs to teach them some very vital things about money. Little wonder these professionals find a lot to do these days.

You can call them credit counselors or debt counselors, what matters is what they do. Whether in the UK or in the US, these are the guys you need to talk to when you want to take certain steps that have to do with your credits. You know there are some decisions that could make or break you financially. When you need to make that choice, talk to a credit counselor.

Sit in with a credit counselor as soon as you start making plans to obtain credit for any major project. With them, you can draw up debt management plans that will see you borrow and yet keep afloat financially.

Credit counseling arms you with some invaluable advice about borrowing. Not all debts have to be paid back immediately, and certainly not all of them have to do you in. The way to learn which is which is to bring your credit counselor into the picture.

A DMP is a debt management plan, one that you can get from a credit counselor. One of its most common benefits is that it helps clarify monthly paybacks to people or financial institutions that you have borrowed from. It’s almost like turning them into banks, making them realize they can make all their money back, and they don’t have to hound you in the process.

Credit counseling is one swell way to learn the difference between good and bad debts. When you are able to choose wisely between your credit sources, you are well on your way. When you are able to balance your borrowings, you are about there. Now that’s what credit counseling is all about.

You can’t afford to fail on your credit card; it could drive your interests up in a scary manner. However, if you got some credit counseling, you might be able to work something out with your credit bank that could get them to be nicer to you. It’s worth giving it a shot.

A debt management plan can win you a reduction in interest rates charged by creditors. A credit counselor draws one up for you, and you are suddenly the favorite of a credit bank. One more reason to get credit counseling.

As a show of good faith and commitment to paying off all that you owe, you might need to pay some good money to your creditor up front for a few months. This is the only way a creditor or a bank will consider you for rebates and reduced interest rates. You got it because your credit counselor was able to lead you there.

You might be one of those who think that no one has any business handling your business, but I tell you you’re wrong. Credit counselors make it their business to make your business their own. And when you do business with them, business suddenly becomes very clear, and you can improve your business relationship with your banks.

The ironic thing about credit counseling is that it was started by credit grantors. One might suppose that they grew tired of squeezing borrowers to their graves and decided to give something back. So now, with your debt management plan, you can cause your creditor to reduce the interests that they charge you every passing month.

Credit grantors created The National Foundation for Credit Counseling, or NFCC, back in 1951. Perhaps it was because they saw that people were getting sunk in debts and they were also losing. In any case, good credit counseling works well for both parties involved, the credit grantor included.

Credit counseling is like the ultimate answer to the problems a lot of Americans face in their daily lives. Many have to deal with how they can handle credit facilities extended to them by creditors, banks and other sources. With credit counseling, now at least, they can.

The American Association of Debt Management Organizations, AADMO, is a trade organization for credit counselors in the United States of America. Of the three major trade organizations, this is the largest. The other two are the National Foundation for Credit Counseling (NFCC) and the Association of Independent Consumer Credit Counseling Agencies (AICCCA).

In the United States, you must complete a credit counseling program before you may file bankruptcy. You must do it within the 180-day period prior to your action, and you must do it with an approved nonprofit budget and credit counseling agency. Failure to comply could be constituted as a felony.

The National Foundation for Credit Counseling, NFCC, founded in 1951 experienced what is perhaps its most difficult challenge towards the close of the last century. An antitrust lawsuit was filed against the organization, at the time, that argued that the presence of creditors on the NFCC’s Board of Directors constituted monopolistic practices. Littl

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