Credit Counseling With Bad Credit

Many people who have bad credit will be tempted to look into the possibility of getting credit counseling.

Credit counseling simply isn’t a very good deal for most people, including most of the people who have bad credit. To make matters worse a lot of the credit counseling services out there are simply attempts to sell you another loan you don’t need.

The idea behind credit counseling is that an expert can tell people how to pay off their debts and avoid getting into more debts. The problem is that most credit counseling doesn’t do anything average people can’t do for themselves.

What Credit Counselors Tell You

Most credit counselors simply tell a person advice they probably already know. To live within their means, pay off their debts and not spend more money than they have.

Since the average person already knows these things it’s probably a waste of time hearing it from somebody else. A far better use of time would be to research methods to improve personal finances.

Reading books or checking out websites about saving money and getting debt is a far better method of getting information. The knowledge gained from such sources is usually better and more useful than that from the credit counselors.

Credit Counselors Exposed

Most of the so called credit counselors especially those who work for heavily-advertised services are not experts in financial affairs. They are simply people paid to answer the phone and answer questions. Most of the advice they give is taken from a script that may or may not be useful.

Paying for such “advice” is a waste of your money. Listening to such “advice” is a waste of your time. Learning to reduce your debts and take control of your finances on your own will be cheaper and far more valuable for you in the future.

Credit Counseling Scams

A lot of the credit counseling offered especially the credit counseling promoted by certain talk show hosts is little more than a scam.

These credit counselors try to sell you a system to reduce or eliminate your debts and repair your credit. This system is usually a lot of paperwork or tapes that tell you to live within your means, control your spending and pay off debts. In other words they want you to pay them to tell you what already know. Never spend money on any sort of credit counseling.

Debt Consolidation Loans

Many credit counseling services are actually trying to get people to sign up for a debt consolidation loan. A debt consolidation loan pays off all of your outstanding loans or credit card bills. That means there will be one payment instead of several. The loan will be combined with counseling as a means of eliminating debt.

Debt consolidation loans might help you get your credit under control. Unfortunately, they usually charge high interest and don’t address the underlying problem. You simply exchange one creditor for another.

The vast majority of credit counseling is a waste of money and time that persons with bad credit should avoid.