Credit Counseling is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education.
Now for the facts. Credit Counseling often fails because people who seek the counseling are way past help. About 1/3 of all people fall into this category. About another 1/3 have other social issues to contend with, so they will fail and the last 1/3 will succeed.
Now this is all according to Liz Pulliam Weston at MSN Money. She also recommends that if you are seriously looking into credit counseling, you need to seek a bankruptcy attorney because it is imperative that you know all your options.
If you are seriously considering Credit Counseling, make sure the company you use is associated with the ‘National Foundation for Credit Counseling‘. The reason I say this is because not all credit counselors are legitimate. And another thing….Just because they claim to be a non-profit or a not-for-profit, doesn’t “really” mean it’s true. LOOPHOLES!
