- What Is Credit Counseling?
Credit counseling, also referred to as debt counseling, is the educational process designed to help borrowers avoid debts.
Also, this process oftentimes includes negotiations between the credit counseling organization and creditors aimed at developing a debt management plan. Unlike debt management plans offered by lenders, DMP set up by credit counselors offers struggling borrowers reduced repayments, fees and interest.
- NFCC and Credit Counseling Agencies
The leading credit counseling organization in the United States is National Foundation for Credit Counseling (NFCC). You can learn more about it in the National Foundation for Credit Counseling section on our website.
Its members are credit counseling agencies that constitute the vast majority of this type of agencies in the US. Also, there are agencies providing consumer credit counseling services that are not members of NFCC.
Most debt counseling agencies offer its services through local offices, over the Internet or on the telephone so that customers can choose the option that best meets their needs.
When choosing a debt counseling agency, make sure its services are legitimate and do not include high hidden fees.