Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Debt Relief » How do credit counseling / debt relief services make money?

How do credit counseling / debt relief services make money?

I see their ads all the time, offering to slash debt in half and such. While I applaud these services for what they are trying to do, somehow they have to make money, or they couldn’t afford to run these ads. Where is the profit coming from.

Appreciate the answers in advance, thanks!

RELATED POSTS:

  1. Credit Debt Relief Help – How to Find Legitimate Debt Relief Services – Part2 Credit debt relief help is aiming towards enabling credit card debtors to find some highly beneficial and affordable ways through...

  2. What is Credit Counseling? Learn about Debt Relief Options – Take Charge America, Inc. Do you understand how credit counseling is different from other debt relief options? Mike Sullivan, Director of Education at...

  3. Debt negotiation credit card services. Curadebt debt relief. www.curadebt.com CuraDebt CuraDebt.com is one of the top debt settlement companies in USA. California, San Diego, Miami, Orlando. Debt...

  4. Say goodbye to your debts through Credit Card Debt Relief Services Credit Card Debt Relief – Are you looking for different options in debt reduction method? Credit card debt relief services...

  5. Can debt relief services affect your credit if you use them to lower your interest rate? I am planning to sign up for Care One debt relief services to help me consolidate my CC debt. Do...

Written by

Filed under: Debt Relief · Tags: , , , , ,

3 Responses to "How do credit counseling / debt relief services make money?"

  1. Harold S says:
    There are two ways for them to make money. One is that they charge you a service fee which is included in your payment.
    second is a rebate from the credit card companies based on their collections of money from you.
  2. PFS rep says:
    Usually they are paid by the creditors and debtors both. The creditors are happy to pay a fee to someone who will get their money for them rather than take a loss. The debtors are happy to reduce payments and get a structured program to repay several debts into one managable payment.

    Everyone is happy with the arrangement. The relief companies are acting a middle men, getting profit they create themselves.

    The key with this is that anyone can negotiate with creditors. They can do it themselves and avoid the fees, whether hidden or known. If they do this then they can apply the ‘fee’ money to the payments and possibly end up ahead of the game.

    Good luck

  3. Teri says:
    Most of them charge a monthly fee. I don’t think that they are worth it at all and people could use that monthly fee to send it to their credit card companies themselves.

Leave a Reply

Connect with Facebook

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player