Common questions about National Foundation for Credit Counseling (NFCC)

The National Foundation for Credit Counseling is a nationwide network of non-profit credit counseling agencies that provide a range of services such as money and credit management education, confidential budget, credit and it counseling, that management plans, bankruptcy counseling and education, mortgage delinquency counseling and homebuyer education. The counseling is delivered by certified consumer credit councilors who have two past third-party councilor certification exams in order to ensure their knowledge and expertise in the financial area.

The following are some common queries regarding the National Foundation for Credit Counseling. What are the benefits of working with her certified consumer credit councilor?

A certified consumer credit councilor has to pass through a rigorous battery of tests to ensure that they possess enough knowledge and expertise to tailor confidential programmes to meet your specific needs.

How is counseling available?

The National Foundation of Credit Counseling offers counseling in person, by mail, online and through the national toll free hotline (1 — 800 — 388 — 22 27).

What happens when you contact an affiliated agency?

When you contact the credit counseling agency will be advised on the information that need to provide for counseling session. You will be able to take back whatever documents you provide and receive professional counseling help in person, by phone, by mail or online.

How are agencies funded?

A majority of the funding of the counseling agency comes through the creditors who participate in the debt management plans and voluntary donations. Local grants from private sources and foundations along with client fees also contribute to the funding of the agencies.

What do the NFCC members and affiliated counseling agencies charge for the counseling services?

The fees associated with the services provided to a consumer varies for each consumer. However a majority of the basic trouncing services are provided for free or at a very low cost.

Will the credit counseling stop legal action and collection phone calls?

Since in most cases the credit counseling agency is able to work with the creditor towards repayment that may stop any legal action by the creditor against you. Once you start making the payments on your debts the majority of collection calls are also liable to stop.

Why do creditors reduced payment working through the credit counseling agency instead of dealing directly with you?

A legitimate and genuine credit counseling agency evaluates the financial situation of the consumer carefully with the help of certified consumer credit councilors. Since a legitimate counseling agency will enroll a consumer in a debt management plan if that is the only option available the creditors trust the professionals at a credit counseling agencies to come up with the right financial solution. Since a credit counseling agency does not abuse the trust of the creditors by enrolling a consumer that could have paid off the debt under the current terms without the re-negotiation of interest rate, the creditors are willing to work with the credit counseling agency to find a solution to consumers that problem rather than risking a write-off of the debt.