Consumer Credit Counseling
Consumer Credit Counseling is a form of debt repayment wherein the credit counseling agency contacts consumers’ creditors and works out a program to resolve their debt. Although it resembles debt settlement, instead of being funded by the consumer, consumer credit counseling agencies are funded by the creditors they are settling your debts with.
Consumer Credit Counseling agencies claim to be able to reduce a consumer’s debt by 50%, however, many proponents allege its actually closer to 10-20% in practice. Many Consumer Credit Counseling agencies have been successful in reducing the accruing interest and even stopping additional interest from accruing during the program