Jesuskana Finance Tips

People go to counseling to corporate credit management and consolidation for the purpose of being debt free as soon as possible after all and the loser is more indebted than they already are.

The new report by the FTCA filed with the Federal Trade Commission indicates that the call credit counseling, consumers more harm than help them stay out of debt. In fact, consumers who use credit counseling to lose more money in a non-refundable payment than they save on the basis of industry statistics. The discovery was made after suggestions from the Federal Trade Commission’s ban on advance payment to the debt consolidation company, which according to the report, titled “Common Sense”, caused enough collateral damage by forcing more consumers to enroll in a debt management plan (DMP).

The report notes that non-profit credit counseling is subsidized by the credit card company, is naive to assume that agents will look at the interests of consumers, and that will support this thesis with statistics, as the fact that 35% of consumers to get touch with credit counselors and those who entered into a debt management plan (WMD) plus 75% of consumers have never completed the program. According to research, the average consumer who uses WMD lost about $ 5,000 in non-refundable payment by credit card companies. Consumers should have been advised to seek the services of a debt settlement or bankruptcy attorney immediately. These agencies financed by the bank and it are logical that they look after their interests first, even at the expense of consumers.

In the midst of its worst recession since the Great Depression and the Federal Trade Commission included the creation of standards that could eventually eliminate the debt settlement industry as we know it is dangerous to push consumers into the arms of loan advisors to eliminate debt. Although it is clear that the debt settlement industry to be cleaned, even in its current form is not regulated is a better alternative to credit counseling to most consumers.

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