When considering credit consumer counseling services, basically you’re admitting you have difficulties to repay your debt and this is a great thing, as the only method to solve an issue is to recognize it. However, the results of the counseling service might lead you on a route that will diminish your credit rating. If you still don’t know by this time, credit score is a number between 300 and 900. If your numbers are high, then you’re considered as credit worthy and you will find it simple to find financial assistance. High credit ratings can get you lower rates of interest and monthly payments on your loan and better terms. In case you’ve got a very low credit score then it will be the reverse of a high one.
There can be several disadvantages in going for a credit consumer counseling services as highlighted below:
· Most folks never even finish the problem. What happens is counselors will draw up a budget for you which you’ll have to stick to in order to pay back your debt. This means that most of your wages will go towards paying back your debt and leaving you with no extra money each month. That can be a source of worry to many people as this usually means that they do not have any money left to put aside for savings. Then you’ll need to live on a budget which may be very stressful and impractical that making people drop from the program.
· Your rates of interest will raise the moment your creditors realize you are going for counseling as this means that your next option would be bankruptcy and they won’t be able to collect their cash at all.
· Even if your counselor managed to lower your monthly payment charges to your creditors, do not forget they have to get paid for their cavalry spv i , so there will be an additional amount in your monthly payments to cover their support fee. In the long run you could wind up paying more. Furthermore, even if your debt is decreased by $10.00, to them they have delivered to their promise to lessen your debt. That is of course the worst case scenario, but you might be the one in a million whom it did not work for!
Therefore, prior to making a decision on going for credit consumer counseling services, make sure you understand all of the advantage and disadvantages . This is the key thing to do in order for you not to regret your actions later on.