Debt is deeply embedded in the lives of consumers
Dallas, TX (PRWEB) August 15, 2016
National Debt Relief recently shared in an article published July 19, 2016 some very useful insight on credit counseling. The article titled “What You Need to Know About Credit Counseling and Debt Consolidation” aims to help consumers who are trying to manage their debt payments understand how credit counseling and even debt consolidation works.
Debt is deeply embedded in the lives of consumers and it has already been a part of life. From a mortgage loan to get a house to a car loan to buy a car and even student loans to go to college - these debts has formed a way of life. But these should not define or even prohibit a way of life. This is why there are credit counseling options for consumers but it is important to have an understanding of how they work.
The article starts off by pointing out to consumers that not all credit counseling companies are the same. When choosing one, it is recommended that consumers look for either Financial Counseling Association of America (FCAA) or the National Foundation for Credit Counseling (NFCC) accredited companies. This is because this and other association require their member to adhere to strict standards aimed to protect the public.
The article also explains how credit counseling companies consolidate their debts which is essentially a debt management plan or DMP. The way they work is that once a consumer agrees with the service, the credit counseling company will reach out and talk to the consumer’s lenders about rates and waiving fees. They then process the payments where the consumer just makes one payment to them a month.
But the article also shares that consumers might not automatically need a debt management plan. It is the job of the credit counselor to look at the specific situation of the consumer and be able to propose options so they can manage their debts. To read the full article, click https://www.nationaldebtrelief.com/8-things-need-know-using-credit-counseling-agency/