Credit Card Counselors-Their True Identity Exposed

Have you ever wondered how a credit card counselor can help you resolve your enormous debts? Have you ever thought of consulting them on how you can get back on the right track? Have you ever tried contacting one?

It is a common mistake to perceive a credit card counselor as a person who will act in the debtor's best interest. True, they will educate consumers with techniques on how to stay out of debt. But come on, it's common sense that in order to reduce or wipe away debt, you simply must try to earn more and spend less.

Arguably the main benefit of a credit counseling program is the ability to negotiate with your creditors to lower your interest rate. However, keep in mind a couple of facts: One, consumer credit counseling service was established in the 50's not by private companies, but none other than…the credit card industry!

Two, a credit card counselor is an individual that earns the vast majority of his income from the credit card companies in the form of a "kick-back". The higher your interest rate, the bigger the "kick-back" the counselor receives. Thus, a conflict of interest arises.

Another concern is the fact that credit counseling companies utilize the term "non-profit". They are legally allowed to use that accounting phrase and so they do so to make it appear that they are on your side.

Credit counseling has other drawbacks. They collect monthly payments and disperse it to your creditors. Every month they will charge you fees for their services. This fee will be added to monthly payment. So, the discount that you received it terms of a lower interest rate will be nominal. You will be paying almost the same amount monthly like you used to.

Another drawback is once a debtor is enrolled in a credit counseling program, failure to pay monthly obligations on time will be enough reason for credit card companies to disqualify them from the program. This is the main reason why many consumers fail to complete the program.
This will mean that you will be back to square one and will be dealing with the same problem over again-only this time you are starting over with bad credit due to your disqualification.

Though seeking the help of a credit card counselor can lower your rates, waive unpaid interest and late fees, and possibly get you out of debt in about 5-8 years, there is another debt elimination program that saves you more. It's called debt negotiation. You may want to learn more about this debt elimination strategy from the internet or contacting a few debt negotiation companies.

Although credit counseling has it's share of positives, the overall strategies employed by credit card counselors are at best…weak.



Joseph Hernandez is the CEO of Debt Free Solutions, a debt consulting firm located in Long Beach, CA. He has established business since October 2000. He is dedicated to assisting Americans across the US to eliminate excessive credit card and other unsecured debt.

He exposes how credit card companies trap Americans into suffering in debt- often for life. He has developed a deep-rooted passion for helping debtors fight back and escape the credit card trap!

He utilizes his expertise to analyze your financial situation. Based on your unique needs, various programs and strategies are implemented. These tactics will aid you in dissolving your debt in the quickest, safest, and in such a method that saves you the most money possible.

He structures his program to drastically minimize the risks that are inevitable with all debt elimination programs.

He offers you much more than a debt settlement company is willing to do. The vast majority of debt negotiation companies simply settle your debts with your creditors- nothing more.

Joseph, on the other hand, provides free services to significantly minimize the risks that are involved by negotiating with your creditors.


(800) 668-8090

It’s critical that you choose the get out of debt. You need to weigh the pros and cons of each program to determine which program is best for you. Choosing the wrong program may leave you in a worst situation!

www.debtfreesolutions.mobi