Credit Counseling is a process by which we negotiate lower payments, fees and interest rates with your creditors. This will reduce your overall debt. A debt management plan will be setup to help assist in paying off your debt. A monthly payment is then made to Delray Credit Counseling.
Financial education is also a very important part of the credit counseling service. The purpose is to build a solid foundation on how to handle your debt, bills, budget and savings. Without education, debt problems can repeat itself. The credit counselors can help assess any issues you may have with your finances.
Questions and Answers about Credit Counseling
Are Credit Counseling companies supposed to be non-profit?
No, credit counseling agencies can be non-profit or for-profit. The IRS has recently cracked down on companies that were not meeting their requirements to be non-profit and very few have been given the non-profit status due to this crack down. Delray Credit Counseling is one company that has been given a non-profit status.
How will debt counseling affect my credit?
Debt counseling can affect your credit both negatively and positively. It depends on your current situation. For example, if you are already late on payments, debt counseling can bring your payments current. This may improve your credit health. On the negative side, lenders might not loan out any money if they see that you are on a debt management plan. In either case, your debt counselor will provide the education you need to maintain your credit through proper budgeting, savings and bill paying techniques.
