Debt Relief Solutions Explored - Credit Counseling and What You Should Know

∗Epic Debt Relief works with debt settlement and negotiation, and is not involved with credit counseling of any kind. The following information is provided for educational purposes so that consumers can make the best decision regarding their debt relief solutions.∗

Every debt relief solution has its own advantages and drawbacks. There are many things that need to be carefully considered before someone can enroll in the right debt relief program. Credit counseling, in particular, is the focus of this article, and is something that needs to be explored thoroughly before it is chosen as a means of debt relief.

When credit counseling came about a couple of decades ago, it seemed like the perfect solution for those people who needed a chance to get back on their feet and get their debts paid off. Consumers paid one monthly payment to the counseling agency, and then it was up to the credit counselor to distribute that payment among all of the creditors that were involved. Today, the process is still the same, but the companies are much different. Consumers are able to get lower interest rates and reduce the time spent paying debts in most cases. Most programs run for 4-5 years, and can help with budgeting, future planning, and other financial services beyond helping to pay off debt.

While a lot of the credit counseling agencies that are out there are non-profit companies, there are many who are for profit that are just looking to make a buck. The majority of the money that these companies get for providing this service comes from creditors themselves, which often raises the debate over who the credit counseling companies are really working for. Generally, the compensation that they get is only a very small amount, although it was once much more of the monthly payment. If you really cannot afford payments and fees, some of the reputable companies will waive fees and other charges initially in order to help you, but not always.

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