The Truth of Credit

In my 10 years of debt collections I have heard every possible reason for not paying a bill.  From divorce to “the checks in the mail,” all of these have some validity and reasoning behind them. More times than not I can empathize with the person’s thinking. I have been there myself, trust me. However, I never quite understood the use of Consumer Credit Counseling Services. Now, I’m sure the people that work for these companies are smart and very much updated on all things credit but they are not on your side. They may take a nicer approach than collectors but they work for the same people. Here are my issues regarding this practice.

They say they are non-profit?

• OK, OK, I know there is a sucker born every minute but how do these companies pay their employees?  All those desks, phones, office spaces and fancy radio ads were not paid for by charity. I know they try to give you the “fair share” story but I don’t buy it. Admittedly, I have never worked for one of these places so I don’t know how the money is split but there is something fishy with all of this.

They don’t report negatives on your credit?

• OK, I’m calling “shenanigans” on this phrase. Personally, I look at credit reports all day. If I see someone with “Credit Counseling” by any accounts that is a danger sign. You might as well have a collection account.  Please don’t think that the bank is going to take smaller payments from you and not make you pay the price. It doesn’t happen!

Here is what I’m getting at…I’m sure that these companies have a place in the market and are beneficial to most people that they work with. However, I want people to understand that they can just as easily do what these “highly trained people can do” for themselves. It consists of simply planning a budget and contacting your creditors. Trust me this is not as hard as you think and the money you will save will go right in your pocket. Remember, this the next time you hear one of those credit company generated commercials.

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