Why “Nonprofit” Credit Counseling Isn’t as Independent as You Think
A nonprofit credit counseling agency isn’t held to the same legal duty your doctor is. Here’s the accountability gap the 2006 reforms never closed — from someone who ran one.
Credit Counseling Industry
Credit Card Hardship Program vs. Debt Management Plan: What a Credit Counseling Insider Recommends
I founded a credit counseling organization. Here is when calling your credit card company directly beats enrolling in a GreenPath DMP — and when the DMP is actually the right move.
Credit Counseling: The Complete Guide to Debt Management Plans
Everything you need to know about credit counseling and debt management plans — how they work, what they cost (including the hidden $400K retirement impact), how to verify agency financial health, and reviews of 25 specific agencies.
Credit Counseling Costs $400K: Myth vs Reality
Part of the Credit Counseling Hub: This post is one piece of my complete Credit Counseling: The Complete Guide — what a DMP costs, who it helps, the agency financial stability risk, and how to verify any agency before enrolling.Quick Answer: Credit counseling through Debt Management Plans costs $1,715 over five years with only a …
Bad Debt Advice: Myth vs Reality
Quick Answer: Nonprofit debt management companies may not be the best solution for seniors, as evidenced by a 70-year-old woman who paid $63,000 over five years through Money Management International. According to a nonprofit law firm director, these companies often use practices that aren’t truly beneficial for elderly clients despite appearing legitimate.I just saw a …
Should Credit Counseling Be Removed From Bankruptcy?
Question:Dear Steve,My question is about credit counseling courses.What are the chances this bill will pass and credit counseling done away with?DonAnswer:Dear Don,I believe you are referring to a proposed bankruptcy law that would adjust the current bankruptcy law and do away with the requirement for bankruptcy credit counseling.I think the odds are unknowable.The inclusion of …
CDRI vs AFCC: Is Either Group Legit?
Quick Answer: Both CDRI and AFCC appear to be industry trade groups focused on protecting debt settlement company fees rather than consumer interests. The Consumer Debt Relief Initiative (CDRI) launched in January 2021 claiming to protect consumer access to debt settlement, but their messaging suggests prioritizing industry profits over acknowledging faster alternatives like bankruptcy.An email …
Debt Relief Plans: What Creditors Really Think
Quick Answer: According to a CFPB report, creditors are increasingly embracing debt settlement companies while loosening restrictions on credit counseling agencies that previously limited them to only promoting debt management plans. Most creditors have also discontinued short-term forbearance programs in favor of long-term internal workout programs lasting up to 60 months.The Consumer Financial Protection Bureau …
Choosing a Debt Management Plan? Here are 9 Things You Should Know.
Part of the Credit Counseling Hub: This post is one piece of my complete Credit Counseling: The Complete Guide — what a DMP costs, who it helps, the agency financial stability risk, and how to verify any agency before enrolling.Quick Answer: A debt management plan involves credit counseling agencies negotiating with lenders to reduce interest …
Debt Relief Fraud: What It Means and What to Do
Quick Answer: Debt relief fraud involves schemes like mass joinder mortgage elimination that cost victims money without delivering promised results. Former industry insider Damian Kutzner, sentenced to 70 months in federal prison and ordered to pay $587,864 in restitution, advises scam victims to file complaints with CFPB and BBB while documenting everything publicly online.At one …
