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

Choosing A New Credit Card
1. Choosing A new credit cardThere are many reasons for choosing a new credit card.
How Do I Establish A Good Line of Credit?
A line of credit, roughly defined, is the amount of credit that can be given to a borrower from a lender. Usually a contract or note of promissory is exchanged between the two parties, in which both parties agree to the line of credit amount, as well as the annual interest due to the lender at the end of the term.
Credit Problems? Heres How to Manage Your Creditors
If you find that creditors are calling you almost daily or that one of more of your bills has been turned over to a collection agency, you should know how to manage your debts.First, prioritize then or rank them in terms of the ones that can give you the most trouble the soonest.
Legislators Ponder New Credit Protection Laws
Legislators in Washington, D.C.
What Is a FICO Score and How Do I Make It Work for Me?
Whether or not you receive a loan and what interest rate you get on your credit card may be determined by something called a FICO score. Named for Fair, Isaac & Co.
It Takes Credit To Build Credit
Using a credit card wisely is an important step in building a good credit rating. If you're trying to re-build your credit or if you're young and just starting out, pay close attention the next time you receive a new card offer in the mail.
Is Plastic Making You Happier?
If you're like most people, you probably own at least one.And like most people, you've maybe never thought what it's really costing you?At a recent conference held by the Fabian Society at London's Imperial college, one of the issues discussed was happiness, and, more specifically, why it seems to elude so many of us.
Top 5 Reasons To Check Your Credit Report Regularly
#1 Make sure mistakes aren't hurting your credit.Reviewing your credit report can help you avoid costly errors.
Credit Card Shocker
Have you ever looked at your credit card statement? I'm not talking about just making sure that all the transactions are correct. I'm talking about looking at the finance charges.
10 Step Credit Repair Guide
The process of clearing credit can be laborious and frustrating, but your efforts will be paid for in better financing. Your rights are protected by laws, but you need to take reasonable actions toward your goal of clearing credit discrepancies.
Five Reasons to Repair Your Credit Score - You Can Do It Yourself
There are multiple reasons that tell us why we should have a 700+ Credit Score, but these five facts will definitely give you the big picture and hopefully will drive you to want to fix your credit score starting today.Fact #1: Did you know that consumers with Credit Scores of 700+ are likely to get interest rates up to four points lower than those with scores under 640.
Small Business Credit Cards
So what do you look for when applying for a credit card for your small business? One thing is for sure, wasting money isn't an option because it can make or break your business. Things to look for are low interest rates and good customer service.
How to Dispute Credit Report Errors
Your credit report--a type of consumer report--contains information about where you work and live and how you pay your bills. It also may show whether you've been sued or arrested or have filed for bankruptcy.
Student Credit Cards 101
Almost all students have and use student credit cards. Some of the students use them wisely and build for them an early credit history but others accumulate lots of debts that would have to be paid off once the student life is over.
New Law Provides Free Annual Credit Report
As of Thursday, December 1, 2004, one-third of Americans will be able to access their credit reports from all three main agencies for free. Passed in late 2003, the Fair & Accurate Credit Transactions Act creates a central source consumers can use to obtain a free annual credit report.
Different Ways to Borrow Money
There are many different ways to borrow money. Outlined below is a useful guide to some of most common ways of borrowing money.
UPS Delivers the Goods, Your Identity
Well now we add CitiGroup and UPS to the Identity Theft corporations who have allowed Americans identity to be lost. Each time we have another identity theft case, we find larger and large numbers being lost.
Do You Want to Get a New Credit Card at a Great Rate?
1) Do your homework. Applying for and getting approved for a credit card is nothing more than legwork.
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.
Is it Safe to Use Online Car Finance?
Online car finance is convenient. You can apply over the net and shop around for a good deal from the comfort of your home.