How Do Credit Counseling Agencies Work?
Posted on June 25, 2009 at 7:37 am
Yes, they are allowed to charge the monthly fee in those states.
Posted on July 22, 2009 at 4:00 am
How much do these guys charge for their monthly fees?
Posted on July 23, 2009 at 7:45 am
Quick question- how do credit counseling agencies work for people who are behind on their monthly payments? Is credit counseling even an option for someone in this situation?
Posted on July 23, 2009 at 1:29 pm
Well there is a slim chance that credit counseling agencies could work for people who are behind on their payments. I would have to assume that the majority of times, if the person is only a month or two behind, credit counseling may still be an option. You have to keep in mind that you must remain current while you are working with a credit counseling agency, so if you do not have any chance of doing that, and are really far behind, you may have to consider debt settlement as an appropriate alternative.
Posted on July 23, 2009 at 10:02 pm
i have heard about the concept of FREE SHARE. can anyone tell me about this?
Posted on July 24, 2009 at 12:37 am
It's actually called "fair share," Ringo Starr. The term applies to the profits that a credit counseling companies from creditors. You see, credit counseling firms used to receive a 15% share of all accounts enrolled to their programs, as creditors have actually worked in collaboration with these debt counselors. The rate has eventually decreased to 4-10% of what the consumers are paying.
Posted on July 27, 2009 at 1:49 am
so you mean to say that the credit counselors actually WORK FOR the creditors???
Posted on July 27, 2009 at 3:17 am
As far as I know they did, for a time, which explained that very concept. It actually is one disadvantage of using a credit counseling company, because they work in collaboration with creditors.
Posted on July 28, 2009 at 3:55 am
does that apply to all the for-profit firms, or to the non-proft ones primarily?
Posted on July 28, 2009 at 6:06 am
Some credit counseling agencies may charge $25-30 as a monthly service fee, but for the most part, they obtain their profits from the percentage they receive from the creditor. As far as I know, the concept of free share exists within the non-profit circle.
Page: 1 2
3