Rebuild Credit with a Debt Consolidation

Non-profit debt consolidation companies can help you rebuild your
credit. By managing your payments and creditor relations, they can get you
out of debt sooner. They can also lower your rates on some types of
debt, such as credit card accounts. Not as detrimental to your credit score
as a bankruptcy or foreclosure, debt consolidation can get you on the
right track.

The Goal Of Non-Profit Debt Consolidation Companies

Non-profit debt consolidation companies are designed to help consumers
get a handle on their finances. That said, not all non-profit debt
consolidation companies are legit. One should research several companies
before signing any contract.

A genuine debt consolidation company will give you plenty of
information and be upfront about their costs. They will give you specific pay off
dates on each of your accounts. They will also explain how the process
works.

How Your Credit Is Rebuilt Through Debt Consolidation

When you first start to work with a debt consolidation manager, it will
take a couple of months to make sure all your accounts are being
handled. It’s important during this time to monitor your statements and keep
in regular contact with all parties.

Each month you will send in a payment to the debt consolidation
company. From this they will pay your creditors and deduct their fee if so
arranged. Some companies just charge a one time fee upfront.

Your credit score may see a temporary dip, but after one year you
should be able to qualify for new credit. As accounts are paid off, your
credit score will rise. Two years after the debt consolidation program is
complete and all accounts are paid off, it is possible to have an
excellent credit score.

The Limits Of Debt Consolidation

Debt consolidation will not save your credit overnight. It takes time
to reestablish your payment history and reduce your debt load. By
sticking to a debt consolidation program, you can expect to be out of short
term debt in five years or less. And by practicing good credit habits in
all areas, your credit score can dramatically improve in two years.

The Truth Non-Profit Credit Counselors

A Secret Credit Counselors Were Able To Hide For A Long Time

Credit counseling was created by the credit card industry back in the fifties, who lobbied in congress to achieve "non-profit" status.

Many have made quite a profit from credit counseling over the years. The banking and credit institutions, credit reporting agencies and those politically sensitive to these corporate lobbying giants all promote credit counseling because next to minimum payments, this is how creditors make the most money!

In 2004 PBS FRONTLINE and The New York Times produced "The Secret History of the Credit Card" and went on to win 2004-05 Grammy for Outstanding Investigative Journalism. (pbs.org/wgbh/pages/frontline/shows/credit/)

Now the truth is out, but your creditors are still hoping you don't find out...

Over half of the Credit Counseling industry lost their non-profit status in the past 2 years.

Here's the PROOF "they" don't want you to see:

• Washington Post: IRS Revoking Exemptions Of Credit Counselors (jaamazing.com/debtgotoguy/truth-about-credit-counseling/Washington-Post-IRS_Revoking_Exemptions_Of_Credit_Counselors.pdf)

Who's best interests do you think they have at heart?

Many people make the mistake of trusting a credit counselor.

The Truth About How Credit Counseling Affects Your Credit

While credit counseling no longer affects your numerical credit "score"*, being enrolled in "CCCS" has a VERY DAMAGING impact on your credit "worthiness".

* This is assuming that the credit counseling agency actually makes your payments on time - which is often NOT the case, as many, many people who have made the mistake of enrolling in credit counseling report.

Why does credit counseling hurt your credit worthiness so badly?

Because statistics say that it's most likely that you will not complete your program but will file bankruptcy instead. Some statistics report that fully 7 out of 10 people who enroll into Credit Counseling fail to get out of debt. Just ask ANY mortgage lender in the country...

They will tell you the truth:

When pulling your credit report, EVERY ACCOUNT included in credit counseling is listed just as a bankruptcy would be, with a notice under each account saying something similar to:

"THIS ACCOUNT IS INCLUDED IN CONSUMER CREDIT COUNSELING SERVICES"

This means big trouble for you and your credit.

Lenders call this a "walking bankruptcy" because it's a *major red flag* indicating you cannot manage your money and had to hire a third party to do it for you. Plus, you still owe the debt and are at much greater risk of filing bankruptcy.

How will these negative credit entries affect you?

You pay much more in fees and interest, if you are even able to obtain credit at all, during the full 5-7 years you are enrolled in credit counseling.

Who's Hiding This Hurtful Half Of The Truth?

Credit counselors, your creditors & the credit reporting agencies are all in cahoots together, and they all promote this "half-truth" that CCCS does not affect your credit score. While this is true that credit counseling has no affect in your credit score, that's only half of the truth.

Now you know why...

Because credit counseling has a Major Negative Impact on your Credit Worthiness. Share these facts before someone else becomes another stat! Learn the difference between "credit rating" and credit worthiness", and learn "how credit works" so it works for you.

The Truth About Credit Counselings So-Called "Non-Profit" Status

Don't be fooled by the "non-profit" credit counselors.

The IRS has revoked the non-profit status of over 50% of credit counseling industry in the past two years.

You see the proof in the news reports above.

But WHY?

Because they're making LOTS of profit!

Their CEO's are paid VERY WELL from the kick backs they receive (called "fair share") -- from YOURS creditors, who pay them (the same creditors who created credit counseling in the first place!)

Plus, aren't you paying a $35-85 a month FEE?

How's that a non-profit?

On top of these costs to you, many credit counselors ask you for a "donation". Often, these agencies pressure their customers into making "regular donations".

Watch Out For CCCS!!!

Now the IRS is conducting an investigation of the entire industry!

Is There A Better Alternative Than Credit Counseling?

Now don't me wrong, credit counseling can be a great thing for certain people.

Could credit counseling be the best option for you?

Sometimes, if a person cannot qualify for any other better programs to eliminate debt faster, at a lower cost and a lower payment with less credit damage, then maybe credit counseling may be best.

Maybe not.

I've helped many people get out of debt through credit counseling over the years, but only after they were educated on the all of their options, and the whole truth about each. I personally consider it unethical to promote a single solution instead of looking at an individuals specific circumstances and situation to discover the exact solution that's best for them.

Are you 100% certain that Credit Counseling is best for you?

If you want to get out of debt ASAP, then you should know that other options are available.

Get Non-Profit Credit Card Debt Consolidation Help

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A large number of individuals spend a vast number of years trying to keep their credit card debt under control, only to lose the delicate balance and see everything come crashing down around them.

When this happens, most people think about turning to credit card debt management companies that advertise their services on television and in other locations. These companies do not really help individuals on a long term basis. Instead, they help them get of the debt they are currently buried under. In a few short years, the same people will probably need the assistance of these companies again for the same reasons. That means that these companies will continue to make earnings off of people who make the same mistakes time after time.

Instead of calling the first service that advertises their assistance on TV, why not get out your phone book and look up the number of a non-profit credit card debt consolidation organization. That way, you can get the help you actually need.

Non-profit credit card debt consolidation services analyze your situation honestly, letting you know exactly what their debt elimination plan will cost you in the long run. That includes the monthly fee that they will charge you for their assistance in the whole process.

Credit card debt management companies charge a service fee too. But they try their best to conceal the amount of that payment from you. Non-profit credit card debt consolidation organizations are not interested in just getting you out of the debt you currently find yourself in. They will no doubt ask you extensive questions regarding your spending habits to help you get your life better organized financially. You will be completely involved in the debt elimination process.

The Catch

Most professional debt consolidation managers would prefer to work for a company that pays them the highest salary possible for the work that they do. Non-profit debt consolidation organizations are not in a position to pay as much as other companies in the field can. That means that they tend to hire less experienced employees.

If, while receiving assistance from a non-profit debt consolidation service, you feel uncomfortable with your debt manager who is working with you, you can decide to get assistance from another service. Make sure that you ask lots of questions and that you understand exactly what will be done in an effort to fix your finances.