credit counselling
Credit counseling is a service that is typically offered by a Credit Counseling Agency (CCA). The agency provides financial literacy and also analyzes a consumer’s debt and spending habits and provides a plan to work out an achievable budget and debt repayment plan with creditors. By requesting that creditors accept a longer pay-off period, the counseling service can often design a successful repayment plan called a Debt Management Plan (DMP). With the help of a Credit Counseling Agency (CCA), new terms are agreed upon to satisfy the outstanding debt. Generally the entire balance is paid back; however the payments and/or interest rates are reduced.
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