National Debt Relief Sheds Light To The Ugly Truth About Credit Counseling

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A debt relief company releases an article on their website to discuss the sad statistics behind credit counseling and why it fails many as a debt solution.

“The Ugly Truth About Credit Counseling” recognizes self-discipline as a vital attitude that debtors should possess especially when going through a DMP.

National Debt Relief (NDR) recently published an article exposing “The Ugly Truth About Credit Counseling”. Paul Ritz, an associate of NDR and the author of the post described credit counseling as one of the debt relief options that people initially opt for.

The article narrates that in credit counseling, a debtor enlists the aid of a credit counseling agency to get help with debt payments through a DMP or debt management plan. The DMP will list all the debtor’s credit accounts and the monthly contributions that can be allotted for each. The agency will then negotiate with the creditors involved to allow the debtor to follow through with the details of the DMP.

While there is nothing wrong with the whole process, the article continues to cite the sad statistics that only “one out of every five people” have actually completed their DMP. The National Foundation for Credit Counseling or NFCC reports that the actual completion rate for this type of debt solution is only 26%. They reported that most of the debtors left to pursue debt relief on their own, believing that they can continue without professional aid.

The article, “The Ugly Truth About Credit Counseling” believes that the statistics are brought about by discouragement from the lack or very little concessions offered by lenders.

The published article does not say that it becomes a totally irrelevant and ineffective debt solution. In fact, it acknowledges that credit counseling does have something to offer their clients. These include a longer payment term, possible lowering of interest rates and a shot at eliminating or lowering of late fees and penalty charges. All of these are intended to lower the contributions that the debtor will be required to send the creditors every month. However, the article states that this is usually not enough for all debtors.

The Ugly Truth About Credit Counseling” also recognizes self-discipline as a vital attitude that debtors should possess especially when going through a DMP.

The article proudly promotes debt consolidation loans and even bankruptcy as having higher completion rates than credit counseling. Not only that, they also encourage debtors to read about debt settlement which, is one of the major services offered by National Debt Relief.

National Debt Relief is a company that have successfully helped thousands of debt-ridden consumers who needed a significant debt reduction. Their professionalism, expertise and experience allows them to proudly say that their completion rate is far more than those of credit counseling. They are duly accredited by the BBB or Better Business Bureau and is a proud member of the AFCC or American Fair Credit Council.

To read the complete article “The Ugly Truth About Credit Counseling”, visit National Debt Relief.

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