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If you are struggling and are not able to work a repayment plan and an overwhelming amount of debt with your creditors on your own, one option you may have found to help you with your problem is credit counseling / debt consolidation plan.
Credit counselors are generally able to negotiate better repayment terms with creditors than you could do on your own because of their contacts/contracts with the credit industry. Once you are following a repayment plan, you’ll only make one monthly payment to the counseling service. Most people can get out of debt in 3 to 5 years.
Consumer Credit Counseling Service talks to you to determine how much you can afford to pay each month. Then they negotiate with your creditors, getting them to accept lower monthly payments until all your debts are paid. You then make a single monthly payment.
A successful repayment plan requires you to make regular, timely payments, and could
take as long as 48 months or longer to complete. As part of the repayment plan, you may have to
agree not to apply for or use any additional credit while you're participating in the program.
According to a recent survey by Freddie Mac and Roper Public Affairs and Media, 57 percent of late-paying borrowers still do not know lenders may offer workout options to help avoid foreclosure. However, borrower confusion is not limited to mortgages, but can extend across the financial industry. |
