People go to counseling firms for credit management and consolidation for the purpose of being debt free as quickly as possible after all and losers out more indebted than they already were.
The new report by the FTCA submitted to the Federal Trade Commission show that credit counseling calls, consumers more harm rather than help them stay out of debt. In fact, consumers who use credit counseling lose more money in nonrefundable payments than they save on the basis of industry statistics. This discovery was made after the proposal from the Federal Trade Commission ban on advance payment to the debt consolidation companies, which according to the report, entitled “Common Sense”, cause enough collateral damage by forcing more consumers to enroll in debt management plans (DMP).
The report notes that counseling nonprofit credit is subsidized by the credit card companies, it is naive to assume that these agencies will see to the interests of consumers, and that will support this thesis with lasestadisticas, as fact that 35% of consumers get in touch with credit counselors and those who get in debt digestion plans (DMP) more than 75% of these consumers never completed the program. According to the study, the average consumer who uses a WMD loses about $ 5,000 in nonrefundable payments by credit card companies. These consumers should have been advised to seek the services of a debt settlement or bankruptcy attorney immediately. These agencies are funded by banks and it is logical that they look after their interests first, even at the expense of consumers.
Amid the worst recession since the Great Depression and the Federal Trade Commission including 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 advisers loan to eliminate debt. Although it is clear that the debt settlement industry has to be cleaned, even in its current form is not regulated is a better alternative to credit counseling for most consumers.
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Posted in Debt Consolidation | 
Tags: companies, Counseling, credit, Credit management, debt, Management Company
Very well said indeed.