Credit Counseling, my opinion and some fun facts about it!

Red Phoenix Consulting is proud to bring some more harding hitting blog stuff to our fans, or our fan! I get asked a lot about Credit Counseling, or the debt consolidation people and if it's a good thing or not. Opinions vary my friends and sometimes it has a place and for me, it doesn't make a whole lot of sense. I'm glad the service is out there, and I hope it helps a lot of people. However in a lot of cases it is my opinion that filing for Bankruptcy is better, here is why. The no fee credit counseling guys get their fee, trust me. When they consolidate your debt into one monthly payment, their fee comes out of that first. Whatever is left over then goes to your creditors. What does that mean you ask? Let me first say in a lot of instances the interest is lowered, and fees have stopped which is good. What is not happening is the fact your creditors have NOT STOPPED REPORTING TO THE CREDIT BUREAUS. That means, when your payment gets sent out and its below the minimum you are taking 30, 60, and 90 day late pays. On top of that, your credit file will indicate that you are in credit counseling. Creditors will also report when it is paid that the account was paid, settled for less than full balance. Those are ouches on your credit report, and now listen to this, or at least read this a couple times if needed. If it takes you 2-5 years to pay all your debt off, then your credit is in the toilet for another 1-2 years how much time will have passed for you? Not everyone can file for Bankruptcy, it does happen. You may have to much pride to file, but that same pride is setting you back YEARS! When you file for bankruptcy, I have been told after 2-3 years you could be able to buy a house. You need to re-establish credit and keep it clean and if you know the right person to help you with that (Red Phoenix Consulting) you could be in a home much faster than going the way of credit counseling. Bottom line is talk to some people, not your brother, or crazy uncle but people that work in the profession. A good Bankruptcy attorney (Red Phoenix knows them) will consult with you for free, a good credit guy can answer a lot of questions for you (Red Phoenix Consulting) Be informed so you can make an educated decision which is what I want for you and your family. Questions and comments are always welcomed, I'm always around.

john@redphoenixco.com