There have been an increase in the number of unscrupulous Credit Counseling operators who are ready to take advantage of unsuspecting debtors.
A few red flags to look out for: The company wants the consumer to pay for credit repair services before any services are provided; the company does not inform consumers about their legal rights, and actions they can take themselves -- for free; the company recommends that consumers not contact a credit bureau directly.

If you do enter into a consumer credit counseling service, lenders will be able to view this on your credit report. All accounts that are in the service will have a notation showing that it is in CCC.

In general, a consumer credit counseling service will not do anything for you that you cannot do for yourself and reflects negatively on your credit report.

There are alternatives to consumer credit counseling. One is debt negotiation. Although you can do this yourself, you will usually have better results using a debt negotiation company. A debt negotiation company will contact your creditors and negotiate settlements and reporting agreements on your behalf.

If you have any equity in your home you may be able to do a debt consolidation refinance or take out a home equity line of credit or second mortgage to help save money monthly and avoid using a consumer credit counseling service. Explore all of your options and sit down with a mortgage broker to find out what would be the best option for you. Make sure if you decide to refinance or take out a 2nd mortgage that you are saving enough money so that you can then afford your outgoing bills.

There is a reason that lenders look upon this type of service in the same manner as a bankruptcy. The service in a sense is very similar to a Chapter 13 bankruptcy with the only real difference being it is done privately, outside of the jusridiction of the court. As with a BK, such measures should be looked upon more as a last resort, when no other more sensible options are available.

Debt Negotiation is a great alternative to bankruptcy (a last resort)and CCC programs. With debt negotiations, individuals have an opportunity to become debt free by paying back a small percentage of the delinquent amount owing.

By utilizing our debt negotiation services, you can potentially:


Avoid Bankruptcy
Receive Expert Debt Management Advice
Receive a FREE consultation
Reduce or Eliminate Creditor Harassment
Save up to “70% OFF” your delinquent debts.
Become DEBT FREE in weeks or months.
Reduce Stress
Keep more of your hard earned money.

Any money spent to repair credit scores will usually end up saving you money in monthly payments due to better interest rate availability if there is a significant positive change to your credit scores.