The number of services offered by a credit counseling service can make difference between a good service and a bad one. We are all aware of the fact that there are thousands of outfits that go by the name of credit counseling service agencies. We also know that some of these are services with a proven track record of helping the consumer out with his debt problem while others are mere pretenders. While there are many factors that have been mentioned that can be noted to spot an un helpful and a potentially fraud credit counseling service, one of the things that should make you less inclined to work with a credit counseling service is if they take the approach that one plan fits all. Each consumer is different and different solutions should be provided for different purposes. So as to the question what a Credit Counseling service does? A limited one that is more interested in their own bottom line rather than the consumer’s will probably only offer Debt Management Plan and try to convince that it is the best option for you. Watch out for this as many credit counseling agencies work on a fair share basis which means that they receive a commission on all the payments that they make to the creditors under debt management plans.
A good credit counseling service, however, not only provides services pertaining to various credit problems such as housing rental, house mortgage and purchase, credit card loans, debt management solutions and pre bankruptcy filing counseling but also strive to educate and advice the members of the community on responsible credit behavior. Many respectable credit counseling services hold workshops with the sole intention of providing consumers with knowledge to handle their credit well. Not every person requires to be in a debt Management plan. Many just require their finances to be organized for them and a budget to be made that shows them how to live within their means. Many need to be shown how to save money every month so that they can begin to get out of debt by paying off their lenders.
A good credit counseling agency will do all of this.