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Credit score Counseling Lies Uncovered – The Stunning Complete Reality Credit score Counselors Do not Need You to Know

You are deeply in debt, questioning which technique to flip. You are confused, frightened, and so wired you possibly can’t assume straight. What do you do? credit counseling

Many individuals mistakenly flip to credit score counselors. Usually individuals scuffling with severe debt make the damaging assumption credit score counselors are “the nice guys” as a result of they promote being “not-for-profit”. Different instances debtors lured by the debt administration companies consider a typical “half-truth” (out-right lie) promoted by the credit score reporting businesses and credit score counselors alike about how such debt consolidation packages have an effect on your credit score. Have you learnt how your credit score could also be affected?

Earlier than we have a look at the reality behind these misleading claims, let’s clear up the terminology and get rid of any confusion.

You see, “Shopper Credit score Counseling Services” goes by many names… however ALL of those completely different names are actually the identical factor. These many names embody credit score counseling, CCCS, debt consolidation, debt consolidation plan, debt consolidation program, debt administration plan, DMP, debt administration program, and naturally the notorious “Non-Revenue” Credit score Counseling Program.

The Reality About How Credit score Counseling Impacts Your Credit score

Whereas enrollment in Shopper Credit score Counseling Services not impacts your numerical credit score “rating”*, being enrolled in “CCCS” has a VERY DAMAGING influence in your credit score “worthiness.” Credit score worthiness is your capability to get a mortgage.

(* That is assuming that the credit score counseling agency truly makes your funds on time – which is usually NOT the case, as many, many individuals who’ve mistakenly enrolled in such debt administration plans report.)

Why does enrollment have such a harmful have an effect on in your credit score worthiness?

· Statistics present it is almost certainly that you’ll by no means full your debt administration plan and can almost certainly file chapter as a substitute.

· Some statistics report 7 out of 10 individuals who enroll into debt administration plans fail to get out of debt.

Simply ask ANY mortgage lender within the nation…

When pulling your credit score report, EVERY ACCOUNT included in your “debt administration plan” is listed simply as a chapter can be, with a discover underneath every account saying one thing much like:


This implies huge bother for you. Lenders name this a “strolling chapter” as a result of it is a *main pink flag* indicating you can’t handle your cash and needed to rent a 3rd get together to do it for you. Plus, you continue to owe the debt and are at a a lot higher danger of submitting chapter within the close to future.

How will these unfavorable credit score entries have an effect on you?

You’ll pay rather more in charges and rates of interest, if you’ll be able to acquire credit score in any respect, throughout the Four-7 years you might be enrolled in your debt administration program.

Who’s Hiding This Hurtful Half-Reality (Outright Lie) From You?

Credit score counselors, your collectors & the credit score reporting businesses are all in cahoots collectively. All of them promote the half-truth that CCCS doesn’t have an effect on your credit score rating. The overwhelming majority, together with the credit score reporting agency web sites fail to say the remainder of the story.

Whereas it’s true that credit score counseling has no have an effect on in your credit score rating, that is solely half of the reality.


As a result of credit score counseling has a main unfavorable influence in your credit score worthiness.

The Reality Concerning So-Referred to as “Non-Revenue” Credit score Counselors

Do not be fooled by the phrases “non-profit.” Claiming a debt administration plan is “not-for-profit” is ridiculous, nevertheless it’s fooled many individuals into making poor cash decisions.

· The IRS has revoked the non-profit standing of over 50% of the credit score counseling trade up to now two years.

· The IRS is conducting an investigation of your entire trade!

Here is the PROOF “they” don’t need you to see:

· Debt administration packages had been created by the bank card trade back within the 1950’s

· The credit score trade lobbied congress to attain their touted “non-profit” standing for the debt administration packages.

· They’re actually a group arm for the bank card trade.

· Subsequent to minimal funds on excessive curiosity bank card debt, Credit score Counseling is how collectors make most of their revenue!

· Their CEO’s are paid VERY WELL from the kick backs they obtain (known as “fair proportion”, often 15% of all funds obtained by you) — from YOUR collectors!

· Plus, aren’t you paying a $35-85 month-to-month FEE?

How’s non-profit?

On high of those prices to you, many credit score counselors ask their clients, who come to them deeply in debt, for a “donation” to their “non-profit” group. Usually, these businesses stress their clients into making “common donations.”

Is that this appearing in your finest curiosity?

A Secret Credit score Counselors Had been Ready To Cover For A Lengthy Time

The purpose of those packages is to:

· Idiot shoppers into paying back 100% of their balances PLUS curiosity once they’re in deep monetary hardship, as a substitute of submitting chapter or looking for debt settlement when such choices could also be rather more acceptable.

Lots of revenue has been made out of these “non-profit” debt consolidation packages over the years. The banking and credit score establishments, credit score reporting businesses and people politically delicate to those company lobbying giants all promote such debt administration plans as a result of that is how they keep in enterprise.

In 2004, PBS FRONTLINE and The New York Instances produced “The Secret Historical past of the Credit score Card” and went on to win 2004-05 Grammy for Excellent Investigative Journalism. (Google “The Secret Historical past of the Credit score Card” to observe this program free of charge online – nice info you may want you had identified sooner in the event you’re coping with bank card debt.)

Now the reality is out, however your collectors are nonetheless hoping you do not discover out…

Is There A Higher Various Than Credit score Counseling?

Now do not get me improper, debt administration packages is usually a great point for sure individuals. Might credit score counseling be the most suitable choice for you?

Typically, if an individual can not qualify for a greater program to get rid of debt quicker, at a decrease price and a decrease fee with much less credit score injury, credit score counseling could also be finest.

It might not be. I’ve helped many individuals get out of debt by credit score counseling over the years, however solely after they had been educated on the all of their choices, and the entire fact about every. I personally take into account it unethical to advertise a single resolution as a substitute of taking a look at a person’s particular circumstances and state of affairs to find the precise resolution finest for them.

Share these details with the individuals you recognize earlier than another person turns into one other unhappy statistic!

Be taught the distinction between “credit standing” and “credit score worthiness”, and find out how credit score works so you possibly can have it be just right for you.

Are you 100% sure Shopper Credit score Counseling Services is the most suitable choice so that you can get out of debt? If you wish to get out of debt ASAP, then it’s best to know different choices can be found.

Hello, I am Jesse Niesen of, the Debt Reduction Information Online and the Debt Free ASAP Blogwhere you get Data, Solutions, Ideas & GUARANTEED Electronic mail Responses to Your Questions.


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