Problems with Consumer Credit Counseling
The various consumer credit counseling agencies are currently the most popular option amongst consumers seeking a way out of credit card debt. However, what those millions might not know is that many of these credit counseling agencies were in fact established in part with funding from the the credit card companies themselves.
Now, this does not mean that these credit counseling agencies are scam operations or that they are working against your best interest. Many people of been helped by credit counseling agencies, and there are many knowledgeable people that work for these firms.
However, it is generally wise to exercise some degree of caution when considering signing up with one of these services. At the very least, do your research on the company and consider other options, including the DO IT YOURSELF DEBT NEGOTIATION option presented on this site before committing yourself to a multi-year payment plan with a consumer credit counseling agency.
One more thing to consider if you do decide to choose a credit counseling agency is that, while many of these credit counseling agencies claim to be non-profit, a certain number of these have recently come under IRS scrutiny for various abuses of this non-profit status.
While this does not mean that all credit counseling agencies are problematic, it does give you reason for pause. It simply pays to consider all your options before committing to any one debt elimination plan, including credit counseling.