Yahoo! Answers*

Question:

Credit Counseling?

What does enrolling in Consumer Credit Counseling do to my credit? Is it considered AS BAD as bankruptcy? Trust me this is my last resort.

Answers:

1) No, it's not as bad as bankruptcy. However, you will not be listed as "paid as agreed" and you may be listed as participating in a "hardship program" on the report.

2) I went to Suze Orman website under resources and I went thru the cccs program she endorsed. It went well for 6 months but then I could not do it anylonger. Payments are still pretty high but the interest rate was low. I just could not keep up. If you have the income you can use this program and dig yourself out. They list it on the credit report but once you finish the program (3) years is normal than cccs is erased from the credit bureaus. If it does not work for you then you may have to do what I am going to do soon.. go to google and type in legalhelpers...... I have found this avenue is not the end of the world and gives you hope and a way out.. do what u have 2..

3) Getting into a Consumer Credit Counseling agency is just about as bad. It will normally be posted on your credit report that you are working with an agency. Trying to get a loan at this point will be nearly impossible as it shows lenders that you have had difficulty successfully managing your debt. There is a high rate of failure with credit counseling agencies. Its not "as bad as bankruptcy" but not far from it.

4) It's not as bad as bankruptcy, but I think it's next in line, the best thing you can do is confirm it prior to enrolling, there are numerous free solutions out there, check out: http://www.insightempire.com/alberta-credit-counseling.html for further information on credit counseling.

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