WHY DO BANKS OWN CREDIT COUNSELING SERVICES COMPANIES

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(No Transcript)
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WHY DO BANKS OWN CREDIT COUNSELING SERVICES
COMPANIES?
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HOW DEBT CONSOLIDATION WORKS

• If youre considering filing for bankruptcy, you
  may wonder why banks seem to own every credit
  counseling service company out there companies
  that will charge you fees to help reduce your
  debt. It turns out that this is more than just a
  coincidence, and in fact, there are some very
  strategic reasons behind banks owning these
  companies. Find out more by reading this article
  on why do banks own credit counseling services
  companies?

A lot of people think that their credit
counseling service is working for them when
really, its working for the bank. Thats because
most credit counseling services are owned by
banks. The way debt consolidation works is that
you make one payment to the credit counseling
service, which then pays your creditors on your
behalf. This can be a good way to get out of
debt, but you need to be careful.
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CHECKLIST FOR DEBT CONSOLIDATION OPTIONS

• For example, if youre just paying off your
  credit card balance and not paying off other
  types of loans like auto loans or student loans,
  all youre doing is transferring what could have
  been more manageable debt into more
  difficult-to-manage debt. If you owe 5,000 in
  student loans and only 2,000 in credit card
  balances, consolidating those two debts into one
  payment would be much better than consolidating
  all your debts into one loan.

There are a few things to consider before diving
into debt consolidation. Namely, youll want to
make sure that the company youre working with is
legitimate and has your best interests at heart.
Youll also want to know what type of debt
services they offer and how much it will cost.
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AVOID THIS COMMON MISTAKE

• A free credit report may also be beneficial so
  you can have an idea of what other options might
  be available for you in the future. Furthermore,
  if youre married, then your spouse should get
  involved in the process as well since its not
  just about you but about the two of you. Lastly,
  dont stop saving money now or spend more than
  necessary because that could lead to more
  financial woes down the road.

Many people are surprised to learn that banks own
credit counseling services companies. The reason
for this is that banks profit from the
high-interest rates that these companies charge.
Credit counseling services companies typically
charge very high-interest rates, which can make
it difficult for consumers to get out of debt. If
youre considering using a credit counseling
service, be sure to do your research and choose a
reputable company.
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HOW DOES DEBT SETTLEMENT WORK?

• You should never have to pay an upfront fee or
  sign any contract without reading the fine print
  first. You should also be aware that if you use a
  credit counseling service, they may negotiate
  with your creditors on your behalf to lower what
  you owe them or even stop certain types of
  collection activity against you.

Debt settlement is a process where you negotiate
with your creditors to pay off your debt for less
than what you originally owed. This can be a good
option if youre unable to make your minimum
payments or youre facing foreclosure. However,
its important to know that debt settlement will
hurt your credit score. It will typically lower
your score by up to 200 points and may take up to
seven years before it has any positive effects on
your credit report.
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THE TOP 3 THINGS DEBT SETTLEMENT CAN SOLVE

• 1. If you have unmanageable debt, are struggling
  to make minimum payments, and fear you may
  default on your obligations, debt settlement can
  help.
• 2. If you are being harassed by creditors or
  collection agencies, debt settlement can put an
  end to the harassment.
• 3. If your credit score has been damaged by late
  payments, missed payments, or charge-offs, debt
  settlement can help improve your credit score.

IS IT CHEAPER TO FILE BANKRUPTCY?
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• Filing for bankruptcy is a process that allows
  individuals or businesses to eliminate some or
  all of their debts. The decision to file for
  bankruptcy should not be made lightly, as it will
  have a significant impact on your credit score
  and ability to obtain future loans. However, in
  some cases, it may be the best option available.
  If youre considering bankruptcy, you may be
  wondering if its cheaper to file for bankruptcy
  than to continue making payments on your debts.
  In many cases, it can be. That said, several
  factors determine how much each scenario costs.
• To determine which is better for you, consider
  these factors
• 1) Are there fees associated with filing for
  bankruptcy?
• 2) How long will it take before you begin seeing
  positive effects on your credit report from
  filing for bankruptcy?
• 3) Will filing for bankruptcy put a dent in your
  assets and income now, but improve them later
  down the line when you qualify for new loans?

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WHICH IS BETTER FOR YOUR SITUATION, DEBT
SETTLEMENT OR BANKRUPTCY?

• 4) How much debt do you have relative to income?
• 5) What is the interest rate on your debts? 6)
  What sort of legal consequences might be involved
  in filing for bankruptcy versus continuing to
  make payments on your debt?
• 7) How much would it cost you (in both time and
  money) to make higher monthly payments towards
  your debt while looking into other options like
  restructuring, borrowing money from family
  members, etc.?

Its no secret that many people are struggling
with debt. The question is, what can you do about
it? You may have heard of debt settlement and
bankruptcy, but which one is better for your
situation?
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• Bankruptcy allows the debtor to keep their
  property, while debt settlement results in a lump
  sum payment to creditors. Bankruptcy tends to be
  more expensive than a debt settlement plan
  because the debtor has to file a petition in
  court, find an attorney, pay the fees up front,
  and then wait six months or more before they get
  any relief from their creditors. Debt settlement
  usually involves the debtor making payments to a
  third party over time, who negotiates a lump sum
  payment with creditors on behalf of the debtor.
  Debt settlements often result in lower monthly
  payments for years compared to bankruptcy.

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Contact Us

• Address - Atlanta, GA
• Email - support_at_c4credit.net
• Phone - [phone]
• Website - https//c4credit.net/
• Blog - https//c4credit.net/why-do-banks-own-credi
  t-counseling-services-companies/