Many of us are aware of the advantages of consumer credit counseling services that are widely available today. In addition to being able to assess your current debts and financial condition, these services may be able to put together a debt elimination plan to minimize or completely eliminate your debts within a period of time. Eventually, this would leave you debt-free, something that is extremely attractive, especially to those who are deeply struggling with credit card debt, for example.
 
Despite the many advantages of this service, it should be known that it also has some disadvantages. Recognized as a different substitute for bankruptcy, consumer credit counseling won’t work unless payments are made on time and promptly, or you may be paying more instead of less. This could also mean that your credit rating is affected. Although most of them claim to be non-profit, keep in mind that many of these service agencies charge up-front fees (can be as much as a few thousand dollars). On top of that, many of these agencies require you to pay a small amount of monthly fee (which adds up to a large amount of money over a period of 3-5 years).
 
Other disadvantages include the fact that if you are having difficulty paying your minimum monthly credit card payments, this service is not recommended as the monthly payments tend to be higher (to offset the debt that has been incurred as well). In closing, make sure before you enroll in any consumer credit counseling, be sure to review the details in the contract thoroughly and agree to the terms before signing. This is candid advice from a former consumer credit counseling employee.