Consumer Credit Counseling Services
Today, millions of Americans are having difficulty paying their debts. They are receiving dunning notices from
creditors and their accounts are being turned over to collection agencies. Most consumers who are in financial
distress are middle income families with jobs who want to pay off what they owe.
Many people face financial crisis at some time in their lives. Whether the crisis is caused by personal or family
illness, the loss of a job, or simple overspending, it can seem overwhelming. But often, with hard work and
dedication, the problems can be overcome. It is important that people who are experiencing financial difficulties
develop a plan and take action. Doing nothing can only lead to much larger problems in the future, such as larger
debt, the loss of assets such as the home, bankruptcy, and a bad credit record.
When someone is carrying debt and having trouble meeting financial obligations, it is important to contact the
creditor immediately to inform the creditor of what the difficulty is and to try to work out a practical payment plan.
Most creditors are willing to work with consumers and appreciate honesty on the part of the consumer. However,
if talking to a creditor does not result in a workable payment plan, consumers may wish to turn to a credit
counseling agency for credit counseling expertise. Credit counselors have professional training in money
management and can provide valuable counseling and support. Consumer credit counseling services are non-profit
organizations supported mainly by contributions from community organizations, financial institutions and
merchants, and provide services free or at a low cost to individuals seeking help. They can be effective alternatives
Creditors may be willing to accept reduced payments if the consumer enters a debt repayment plan through a
reputable credit counseling service. Under such a plan, the consumer will deposit money with the credit