There was a time when the credit counseling services were dominated by the National Foundation for Credit Counseling (NFCC). They had and still continue to have non-profit affiliates called the Consumer Credit Counseling Services in various cities. These outlets can now be found in virtually every major city across the United States of America.
To the increasing amount of debt over the past two decades and the current debt crisis being faced by the economy credit counseling services have boomed. Thousands of such outfits have cropped up during the last decade. Some are genuine operators who will help the people who are under debt to get back on their feet again while others are fly by night companies that will disappear with your money causing your credit rating even more harm than good. Some of the credit counseling services are average operators that may or may not be able to help you get out of debt.
Ever since credit counseling became a good and viable business hundreds of competitors now spawn the market. Many of them have advertising budgets that you run into millions of dollars. Several credit counseling services have a strong Internet presence and promise you as far as repairing your credit rating is concerned.
Some of them a good job organizing your finances were you and negotiating repayment plans. Others may charge you a hefty fee that could otherwise have been utilized in paying off your lenders. The worst-case scenario is where an outfit sets up a false claim of being credit councilors or specialists in debt settlement. The charge you an upfront fee in tune of thousands of dollars for getting you out of debt. By the time that you figure out that nothing is being done about your debt management they usually abscond with your money and set up shop somewhere else under another name and address.
Another fact that is a little surprising is that many credit counseling services are now targeting people who do not necessarily have a bad credit situation but are simply discontented with their current interest rates. Such services commonly charge a heavy fee in promise of saving the consumer thousands of dollars over mortgage and loans over the years.
For information on how to locate a credit counseling service for yourself, read our guide on How To Locate A Credit Counseling Service.