Credit Counseling

Consumer Credit Counseling

Consumer Credit Counseling (CCC) programs have a greater than 70% failure rate. Not all creditors work with credit counseling companies, which means you will have to handle those creditor accounts left out of the program on your own.

The main problem with consumer credit counseling organizations is that they are not working for you, they are WORKING FOR THE CREDIT CARD COMPANIES. This may seem unbelievable, but it is true. Most consumer credit counseling agencies are alleged non-profit organizations that claim to be independent. But in fact, these non-profits are funded and supported by the very people you owe money to - the credit card companies. That is why consumer credit counseling companies do not negotiate your debts balances down. All they do is bring your interest rate down a little because they want you to keep paying the full balances.

In BlueChip Debt Relief's "Fresh Start Debt Relief" program, your debt balances will be settled for lower amounts based on your current financial capabilities. This will save you thousands of dollars compared to consumer credit counseling programs where you’ll pay the full balances plus interest. Also, our programs can be as short as 3 years, so you can be out of debt 2 years faster and for a fraction of what you'd be paying into a CCC debt management program.

In addition, many large consumer credit counseling companies have been the subject of major lawsuits, and the IRS has recently stopped granting non-profit status to consumer credit counseling firms. At BlueChip Debt Relief, we receive no payments from your creditors, so our incentives are perfectly aligned with yours - saving you the most money. Our programs are solely based on the financial capability of our clients, not so-called industry averages.

Why not become debt free as soon as possible, as opposed to being stuck in a consumer credit counseling program for two more years? As soon as you learn about the alternatives, the decision becomes easy to choose BlueChip Debt Relief's "Fresh Start Debt Relief" program.

To see if you qualify for our "Fresh Start Debt Relief" program and avoid consumer credit counseling, either fill out the quick form online or call one of our professional debt counselors at (888) 9 DEBT RELIEF (888-933-2873).

Debt Settlement vs. Consumer Credit Counseling

It's impossible to definitively answer the credit counseling vs. debt settlement debate because it depends on a number of variables that differ from person to person. The following will break down which factors you should consider before choosing the appropriate option.

1. What can you afford? Consumer credit counseling programs tend to be more expensive than debt settlement programs. The reason is simple: consumer credit counseling services only produce results on the interest rates, whereas debt settlement is able to actually lower the amounts you owe. Simply put, if you are in a true financial bind, then the clear choice for you should be debt settlement, and on a pure "money saved" basis, debt settlement will almost always be the answer. Although this is undoubtedly an important factor, it is not the only variable to consider before making a decision on which program is best for you.

2. What sort of credit impact can you tolerate? Some consumer credit counselors out there will undoubtedly tout that their program doesn't affect your credit score negatively. This is a play on words. Sure, your score won't drop, but ask any lender what the impact is to your loan application. Let us save you some time - it has a negative impact. That being said, debt settlement is no better for your credit. In general, lenders do not like seeing debtors seeking outside help for their financial situation, as well as seeing the past due marks on a credit history. So let's consider this example: Four years ago, John decided to use consumer credit counseling, and Mary decided to follow the debt settlement path. They both have the same income and expenses, and they both apply for a $200,000 mortgage. Who is more likely to get it - John, who is 1 year away from completing his credit counseling program, or Mary, who finished her debt settlement program 1 year ago and has since been rebuilding her credit? While this may vary from lender to lender, in general, Mary would be considered the better loan applicant, especially when you consider the fact that Mary will probably have a bigger down payment because she saved a lot more money doing debt settlement.

3. Who do you owe? So you can save more money in debt settlement, but not always. If you owe a more aggressive creditor, then it's possible that credit counseling or bankruptcy may be a better option for you. The reason: aggressive creditors not only tend to settle for more on average, but they are also more likely to pursue legal action to collect a debt. Although under most circumstances debt settlement is still successful with these creditors, it is a riskier undertaking when you're dealing them.

4. What is your personality type? We've read just about every article online regarding consumer credit counseling vs. debt settlement, and we're amazed by how most finance authors eliminate the human element from this discussion. The bottom line: debt settlement is not for the faint-hearted. There is no guarantee that everything will work out exactly as planned. Some settlements may be higher than estimated. Some settlements may be lower than estimated. You will inevitably get some creditor calls. This is the nature of the program, and you must be willing to accept some level of uncertainty before enrolling.

The questions above were organized in this order on purpose. After all, if you can't afford consumer credit counseling, then it's pretty much out of the picture as an option for you anyway. This is not meant to sound overly cynical, but we live in a material world and issues like having an anxious personality must be sacrificed when you don't have the money necessary to freely exercise this aspect of your character. On the flip side, if your debt is only with an aggressive creditor, it would be foolish for you to choose debt settlement over credit counseling or bankruptcy just because you consider yourself a risk-taker.

There are other variables that influence whether a debt settlement program or consumer credit counseling program is appropriate for you. Your best bet is to discuss your individual situation with a BlueChip Debt Relief specialist at (888) 9 DEBT RELIEF (888-933-2873).