Is using credit counseling services a good idea?
A – No. My personal opinion is to stay away from credit counselors. If you are working to get a mortgage loan and have “CCC” (Consumer Credit Counseling) listed on your credit report, it is the kiss of death for five years. Virtually no mortgage lender will work with you for a minimum of five years. You can go through a bankruptcy and foreclosure and almost any mortgage lender will give you a prime loan in two years. Have you ever wondered why consumer credit counseling services are non-profit? These services will take over your finances and work out a payment schedule and all of this will cost you nothing. Most people mistakenly assume that these consumer credit counseling services are government funded, but they are not. These services are funded by tax-deductible contributions from the credit card companies. Why would they do that? The answer is simple. If you claim a bankruptcy that wipes out all your credit card debt; that is a loss to the credit card companies. However, if you ch
