See my research, posts, and articles on credit counseling, including how it works, benefits, and potential drawbacks. Click the link to explore key insights!
In the maze of debt relief options, one wrong turn could cost you nearly half a million dollars in lost retirement savings. Many consumers trust nonprofit credit counseling agencies to help them navigate their debt, but the reality is far more expensive than advertised. Before committing to a Debt Management Plan (DMP) or filing for …
Question: Dear Steve, I’m living on permanent disability and dealing with credit card minimum payments that are eating most of my monthly income. I have been told that ACCC American Consumer Credit Counseling (the nonprofit organization) is great at reducing interest rates and monthly payments by 50%. Is this true? Are they reputable? What could …
Almost half of seniors have incomes within 200% of the poverty line. They are classified as economically vulnerable and retire owing more debt than ever before. It is natural then that seniors with financial problems would search for someone to help them. Before the internet, communities had a local Consumer Credit Counseling Agency that would …
I just saw a Houston Texas TV story about Suzanne Black, an elderly 70 years old woman involved with a nonprofit debt management company, Money Management International. She paid $63,000 over the last five years with their help to get out of debt. While this may sound all fine and good on the surface, I …
Question: Dear Steve, I am $25,000 in debt. I gross $60,000. Should I use CCCS services or try to do this on my own? I’m overwhelmed, single mom, two kids, mortgage. I have no breathing room left. The very card is maxed, and now with interest, I will be over my limits. Should I use …
Some companies love to sell debt validation as a miracle solution—but is it really? In this episode, Damon Day and I pull back the curtain on what debt validation actually is, what it doesn’t do, and why some sales pitches make it sound way better than it really is. If you’re considering debt validation to …
Dear Steve Hi! I am a piano teacher, and due to the bad economy have very few students, even though I am used to having plenty. We just moved because we could no longer afford where we lived. We gave up our house in a deed in lieu of foreclosure. My husband took a cut …
We are creeping up on nearly two decades of account fee restrictions for nonprofit debt management plan providers. The counseling groups fought hard and heavy in the early 2000s to limit the fees they could charge consumers for budget advice and debt management plans. For example, in 2003, the State of Maryland enacted The Debt …
The Consumer Financial Protection Bureau (CFPB) just released a CFPB Report on Debt Settlement and Credit Counseling that is partially helpful. The issues surrounding debt settlement and credit counseling have so many nuances and facets that general look at trends in the two solutions is nearly always inaccurate. If you focus on just the debt …
Question: Dear Steve, I owe a lot of cc debt but have never missed or been late. I’m probably their most profitable client! I’ve asked for reduced rates, but been declined, leaving me few alternatives. Why would an issuer rather force me into bankruptcy rather than offering this relief? Karen Answer: Dear Karen, Yes. Logic …