Arizona Credit Counseling
Arizona Credit Counseling
We receive quite a few questions about credit counseling including:
- What is Arizona Credit Counseling and how does it work?
- Is credit counseling the best choice for debt relief or should I consider other alternatives?
Arizona Credit Counseling: Things to Know
Although many Arizona credit counseling organizations claimnon-profit status, Credit counseling programs work in a very similarmanner as a collection agency. Credit Counselors work on behalf of thecreditors who pay them a fee (usually somewhere between 12-15% of theamount they collect for the creditors). In addition to being paid bythe creditors, they also usually charge a monthly fee that usuallyranges from $15-$40.
Arizona credit counseling organizations typically work withprearranged figures with creditors to reduce your interest rate andminimum payments. The average minimum reduction is 8%. It is notunheard of to have some creditors that will not go below a 20% interestrate and other creditors who may completely refuse to participate inthese programs.
Most of the time when you enroll in a credit counselingorganization, most (or all!) of your credit cards will be cancelled andyou will need to pay 100% of the full debt amount, including interest!
What percent of people who start Consumer Credit Counseling programsdo not complete them? We don’t know for sure, but we are aware ofplenty of poeple who begin the programs and then drop out.
Considering Arizona Credit Counseling?
If you are considering enrolling in credit counseling, be sure to research your other options such as Arizona debt settlement or even possibly filing for Bankruptcy in Arizona.
