Credit Counseling: Is it Really Necessary?

Not everyone has a positive experience with credit counseling. Potential creditors often frown upon consumers who are going through credit counseling, denying them credit or sticking them with elevated interest rates on new lines of credit.

Some consumers, who have found themselves in this situation due to credit counseling, would tell you that you can accomplish the same things on your own. It is simply a matter of educating yourself on the inner workings of the creditor you are dealing with. Many who have dealt with the negative affects of being associated with a credit counseling company, wouldn't have pursued credit counseling at all, had they known how it would affect their overall credit in the long run.

Credit counseling companies, of course, will have you believe that you can't solve your financial problems without them. If credit counseling is your last stop before pulling into bankruptcy station, you may be surprised at how willing your creditors are to work with you in your time of financial hardship. Quite simply, they would rather collect something from you than have to write it off as bad debt and never see a dime from you. Credit counseling works on these principles and that is why it is so easy for credit counseling companies to negotiate with your creditors.

If you simply can not negotiate a satisfactory solution with your creditors, or you can't deal with the stress of trying, credit counseling may end up being the best solution for you after all. Just don't jump to that conclusion too quickly. Credit counseling has been a life saver for many consumers and a nightmare for others. You will need to personally weigh the pros and cons of using credit counseling as a means of reaching the level of financial freedom that you desire, and staying there.

Timothy Gorman is a successful webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, bankruptcy and free credit counseling information that you can research in your pajamas on his website.

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Credit Information:

Related Articles

Learning the Disturbing Facts about Credit Card Debt
When I received my first credit card in the mail at age 18 I was ecstatic, I said to myself, wow now I'm getting somewhere in life. This credit card company thinks I'm worthy of 500 dollars in credit.
Compare Credit Card Offers and Reward Yourself
Here's a simple system on how to pay zero interest and get tons of free stuff. Almost everyone uses credit cards.
Free Credit Report - A Website Typo Could Be Costly
In 2003, Congress passed the Fair and Accurate Credit Transactions act (FACT), which made it possible for consumers to obtain a copy of their credit report for free. In fact, the legislation makes it possible for consumers to obtain one free report from each of the three main credit bureaus - Experian, Trans Union, and Equifax, per year.
Credit cards
If gold medals were awarded for marketing consistency, the credit card industry would be the Sarah Hughes of the business world. Major players Visa and MasterCard, who have maintained their steady rates of spending and commitment to their positioning platforms for years, will stick to their established routines this year.
Credit Report Secrets: Do You Know What They Reveal?
If you've ever applied for a credit card or loan, you've probably hadyour credit report reviewed by the lender. Your credit report has a huge impact on your financial future, so it's well worth your time to be sure that you understand what your credit report says about you.
Choosing The Credit Card That Is Right For You
Credit cards represent an important part of our financial lives. Having the right credit cards is essential and will make a big difference to your finances.
Five Credit Card Billing Problems and How to Fix Them
It goes without saying that your first and best defense against paying fraudulent or unfair charges on your credit card is knowing what your bill says! When you receive your credit card statement each month, sit down with it and check each item to make sure that you actually DID purchase it. If you do run into inaccuracies or problems, there are procedures to follow to report and deal with the charges.
How to Order the Right Credit Reports to Repair Your Own Credit
In this week's article, I am going to offer some tips and insight regarding how to order the right credit reports needed to repair your credit.Believe it or not, a majority of the credit reports offered on the internet don't have the required information (File Number, Confirmation number, or Report number) needed to repair your own credit.
Credit Score - Reporting Your Financial Health
Credit score is one of the most basic, determining factor while loan borrowing. Credit score is the criterion for the creditor to ascertain whether to give you credit or not.
Why Should You Use Credit Cards
Believe it or not, the way society, especially the commercial side, is set up these days, the only alternative to using credit is to pay cash for everything. But it's actually quite hard to do that.
Credit Repair, How To
Credit repair, is in a word, vital to reestablishing your credit. Unless you plan to never use your credit again, then you have to find a way to fix it.
Building Good Business Credit After Bad Credit
Can you establish good business credit if you have bad personal credit? The answer is yes..
Getting Your Credit Report and Understanding Whats On It
If you intend to apply for a loan, you need to obtain your credit score. Understanding what this score means will allow you to make the loan process easier and quicker.
Ways to Look Good without Selling Your Soul to the Credit Card Sharks
1. Buy clothes at thrift stores.
Credit Traps Snag Consumers
Nearly 20 years ago I worked for a small consumer advocacy organization in Washington, DC. Each week we received sacks full of mail from consumers across the country requesting our list of credit cards with low interest rates and no annual fees.
Know Your Credit Card Rights
When you apply for a credit card, the application that you sign is also a legally binding contract laying out all the termsbetween you and the bank, such as the interest rate and how its calculated, the grace period, whether there's an annual fee, etc.While you have to agree to the terms and sign if you want the credit card and while the lender will certainly hold you to the terms, the lender doesn't feel similarly committed.
Trying to Land a Job? Poor Credit Scores May Hurt Your Chances
Many employers are now looking at an applicant's credit report for hiring purposes. During an interview process a potential employer may request your written consent to access your credit report.
How to Repair a Bad Credit Rating
If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.Once you have a bad credit rating, it might seem like there's nothing that you can do about it? but you don't have to believe that.
Credit Repair Scams
"Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've probably seen these headlines and others just like it promising to clean up or "fix" bad credit. For someone who suffers from a bad or poor credit rating, these headlines are certainly an appealing offer.
Good Credit Is a Necessity for Everyday Living
Most of us want a good credit report to obtain vehicle financing, credit cards for emergencies and luxuries, and to finance a home mortgage. However, beyond these consumer loans, a great credit report makes your life easier.