Posted on March 14, 2008 at 11:54 am When not to use a credit counseling program There is a little secret that credit counseling agencies don't tell you. When you enroll on a debt management program, your credit cards will be frozen, leaving you with a negative ratio of debt to available credit. This will significantly affect your credit scores. As your access to credit is eliminated, you will also be on a path towards disaster if you don't have savings and an emergency occurs.  source: daytipper.com NL (3-14-08) p.s. There are other reasons not to use a CC agency. Go to the consumer link at www.ftc.gov and read the drawbacks the FTC points out.

Posted on May 6, 2008 at 6:16 pm Now I was told something different than what I just read. I was told that credit couseling doesn't affect your credit score but it does and can affect you getting financing. If a lender notices that you are participating in a credit counseling it comes off to be unfavorable.

Posted on March 28, 2009 at 1:25 pm I knew about the frozen credit cards, but not the negative side effects.  However, with that being said, debt consolidation is often the only option for someone who is drowning in debt.  And, while it might effect a person's credit rating, chances are the person would be better off with the lower monthly payment and reduced interest rate. The ideal situation is to never have to use credit cards again after the situation resolves. Thanks for the great info and link. 

Posted on March 28, 2009 at 3:38 pm huh, thanks for sharing or i would never of found out. thats very annoying how sites like this don't tell us about all the flaws in their programs