Does a credit counselor convince individuals that their service os good?

Question

My boyfriend and I were discussing the purpose of credit counselors. My boyfriend says that they only suggest things to you and its your choice to make, which I agree with. I dont think that credit counselors are bad, but I think that their job is based on convincing individuals that their service is beneficial. Do you think that convincing is part of a credit counselors job?

Answer 1

If the consumers are not very bright, then yes.

Answer 2

Of coarse they are, this is there primary job. If they did not they would be fired. There are however people out there that do it on the side for large companies and they are not so pushy. A fiend of mine contracts with one of them and he tells people all the time not to do it but to just try to restructure there money but it does really depend on the situation.

Answer 3

Here is the problem.

By definition a "credit counselor" is supposed to advise and educate you on your credit problems.  When you go to someone advertising themselves as a "credit counselor" that is what they should do.

Unfortunately these people are employed by companies suck as bankruptcy attorneys, consolidation loan companies, credit repair and credit debt settlement companies.  Each of them will naturally guide to  the services their "employer" supplies.  They are obviously biased and will guide to services that are not the best for your situation.

So your counselor may suggest you file bankruptcy, when in fact you could probably get by with a consolidation loan and some "real" credit counseling to educate you on budget management.

Or they may talk you into debt settlement, when it's obviously you are so deep in trouble that only bankruptcy will fix it.  

Some day the states will pass laws that will isolate credit counselors to do this...but for now let the consumer beware.  Look around for non-profit debt counseling agencies.