Frequently Asked Questions

Is it true that credit counseling agencies are friendly with the credit card companies whereas settlement companies not so much?

Generally this is true. The credit card companies actually pay credit counseling agencies to help assist debtors because a debtor who is a client of a credit counseling agency will end up repaying everything he/she owes over time. However, debt settlement companies reduce the amount the credit card companies ultimately collect so it’s a different type of relationship. Not necessarily bad but certainly the credit card companies prefer people use a credit counseling agency over a debt settlement company.

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