Credit Counseling

Consumer Credit Counseling (CCC)

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 down. They merely try to come up with a plan to make sure you keep paying your credit card bills.

And since you are repaying 100% of your balances plus interest charges (even after they are reduced by consumer credit counseling), you could be in a consumer credit counseling program for 5 years. Now compare that to 2-3 years in BlueChip Debt Relief's "Fresh Start Debt Relief" program and you'll see there really is no comparison.

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. This allows us to lower your monthly payments, put you on a shorter program and save you the maximum amount of money.

With BlueChip Debt Relief's "Fresh Start Debt Relief" program you can be out of debt twice as fast and for a fraction of what you'd be paying into a consumer credit counseling debt management program. Why not become debt free as soon as possible, as opposed to being stuck in a consumer credit counseling program for several more years? As soon as you learn about the alternatives, the decision becomes easy for you 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 contact one of our professional debt counselors at (888) 9 DEBT RELIEF (888-933-2873).

Debt Settlement Versus Consumer Credit Counseling

It's impossible to definitively answer the credit counseling versus debt settlement debate because it depends on a number of variables that differ from person to person. The purpose of this article is 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 negotiate the amount 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's devastating. That being said, debt settlement is no better for your credit, and lenders in general definitely do not like seeing debtors seeking outside help for their financial situation. On the flip side, they definitely do not like seeing the past due marks from enrolling in a settlement program. 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 and half 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 add in 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 like Citibank, then it's possible that credit counseling or bankruptcy may be a better option for you. The reason: Citibank not only tends 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 with Citibank. If you cannot afford credit counseling and your debt is exclusively with Citibank, then unfortunately you're probably better off consulting a bankruptcy lawyer.

4. What is your personality type? We've read just about every article online regarding consumer credit counseling versus 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 completely 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.

We organized the 4 questions 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. We don't mean 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 you have 100% Citibank debt, it would be foolish for you to choose debt settlement over credit counseling or bankruptcy just because you fancy yourself a risk-taker.

There are countless other variables that influence whether a debt settlement service or consumer credit counseling program is appropriate for you (i.e. what state you live in, your income source, etc.). Your best bet is to discuss your individual situation with a BlueChip Debt Relief specialist at (888) 9 DEBT RELIEF (888-933-2873).