*Loan,banking and credit>>>credit counseling

Question about credit counseling?

I heard from websites that going through credit counseling for debt consolidation or lower payments is treated like a Chapter 13 bankruptcy. Apparently this would make it more difficult to get a home loan in the future? Is this true? It would help if I get responses from someone who has gone through credit counseling.

i work for a bank
yes consumer credit counseling is considered one step before bankruptcy and typically you may run into some challenges when trying to get approved for any loan since it will show on your credit you are doing consumer credit counseling.

Not to mention that the counseling services forewarn you that you may have bad marks on your credit while they are managing your debts...

this might work for some people but the thing to realize is that these companies work for creditors, not usually for consumers. Source(s): I work for a bank so i know general underwriting guidelines

Self help is the best help you can give yourself.

Do some research on the web on how to deal with collection agencies and how to negotiate with creditors. There are literally dozens of websites that have information on credit repair and how to talk to a collection agency.

You can probably do everything yourself and save yourself that counseling fee.
http://www.ftc.gov/bcp/conline/pubs/cred...
I went through credit counseling several years ago. Used Consumer Credit Counseling, it was free and they saved my butt.

It doe's show on your credit that your accounts are being managed by credit counseling and it will effect you if you apply for additional credit while in counseling. After you are through with counseling, you should not have any trouble.

It took me almost 2 years to get completely out of debt but it was worth it.
Credit counseling is what you make of it. You can do everything a credit counselor can do, and for free. FIrst, set a budget, then contact your creditors and try to negotiate a payment plan. Last, DO NOT CHARGE ANY MORE!!

Credit counseling is not treated as bankruptcy. You are not given ANY protection under the law. Depending on which company you use (if you go that route), it can hurt your score. CCCS just sends a letter to your creditors that says, "this is what we are going to send you." All accounts have minimum payments, and the CCCS payments are never enough to cover them. Therefore, your accounts get further and further behind.

You will do better to negotiate directly with your creditors, as it shows your intent to repay.

Good luck!
I am a certified credit counselor with a credit union. We offer our services for free.