Company Backgrounder

For Immediate Release - September 26, 2002

Q: New Wave of Credit Counseling Services

There appears to be a new wave of credit counseling services aimed at assisting customers to cope with the financial distress brought on by today's economic fluctuations.  More and more individuals are supplementing incomes with credit cards and over time find themselves struggling to keep their heads above water while debt continues to accrue.  The good news is that there are third party agencies that may assist consumers in avoiding bankruptcy and finding financial freedom again.  The bad news is that one must know how to discriminate between the two most popular options in order to avoid the twin problems of adding costs to already mounting debt and failing to resolve the financial crisis.

Many of the non-profit credit counseling agencies have found that there is a significant drop out rate among their clients and have figured out a way to capitalize on this.  Clients are asked to provide a month worth of several months' worth of consolidated payments (anywhere between one to three months) in addition to the payment that needs to be made to the creditors.  If the clients are unable to keep up with the interest rates and consolidated payments, this leaves the "non-profit" agency with a lump sum of money originally intended for the resolution of the debt which is not returned to the client.   

Debt settlement firms provide the individual with a positive alternative to bankruptcy by negotiation with creditors.  The agreed upon amount is usually paid in one lump sum, but installments may be available in certain instances.  With a responsible debt negotiation firm, the client pays a commission based on the percentage of savings of the amount of debt. 

Once the debts have been settled, it is up to the consumer to ensure that their credit report reflects the correct information pertaining to the debts.  While it is true that creditors do not go out of the way to report paid debts, it is possible to raise FICO scores by being attentive and patient and utilizing the assistance of a knowledgeable company specializing in credit matters, or by learning how to do it yourself.

The reality of the current economic state is that more and more Americans are finding themselves struggling with unsecured credit card debt.  With the right proactive company financial goals may be within reach.  It is not necessary to be defeated by debt.  Explore all options.

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CuraDebt.com is a center for helping consumers nationwide become debt free without filing bankruptcy.  The agency provides a FREE Debt Freedom plan consultation, FREE Debt Freedom Teleconferences, the FREE newsletter, Secret Money Tips, and other valuable information via phone at 1-877-850-DEBT (3328) or on the web site, www.curadebt.com.

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