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Franklin Debt Relief offers a debt settlement program to consumers
and is not a credit counseling agency. The information presented
below is for educational purposes, so that consumers can make a more
educated decision on whether debt settlement, the service offered by
FDR, or credit counseling, the option described below, is a better
debt relief solution for their situation).
Given the nature of credit counseling and the fact that the majority
of their income is derived from percentage-based contributions from
the creditors, it should come as no surprise that many consumer
advocates question whose interests they are really serving—the
consumers or the credit card companies. Other financial experts flat
out consider credit counseling agencies as nothing more than a
collection agency in disguise. Although important to keep in mind as
one scours through the maze of debt relief options, consumers should
also not let this inhibit them from enrolling in a credit counseling
program if it will truly be a benefit financially. In other words,
if you are working with a credible organization that is offering you
dramatically lower interest and payments, what difference would it
make if they are making money off providing their service? Sure, the
credit counseling organization benefits, but so does the consumer.
The main reason why the issue of “whose interest credit counselors
serve” is important, however, rests with the fact that many
consumers assume that since some credit counseling organizations are
non-profit, they will offer trustworthy or intelligent advice.
Simply put, this is a very dangerous assumption. Consumers should
remember that they are best at determining the appropriate approach
for debt relief because 1) they know own their goals and needs
better than anyone and 2) they will always have their
self-interest in mind.
For consumers in desperate need of debt relief should not be swayed
to pay more than they can reasonably afford because the advice comes
from a non-profit credit counseling agency. Ultimately, it is the
consumer’s responsibility to carefully weigh and research their debt
relief options, not an agency that is funded primarily by the credit
card companies.
Follow this link to learn about the second major disadvantage of
credit counseling. |
