Debt Management Plan from Credit Counseling Companies – Protect Yourself Says the FTC and Federal Government
Posted on | May 25, 2010 | Comments Off
A debt management plan from credit counseling companies has become very popular over the last several months as Americans are attempting to dig themselves out of debt. It is important to note that the FTC and federal government warns to protect yourself when it comes to debt management plans offered by credit counseling companies.
The government and FTC force borrowers to go through a 60 to 90 minute credit counseling session before filing bankruptcy. The government does not force borrowers to go to a debt management plan. A debt management plan as a separate account that is funded by the customer and used by the credit counseling company.
The credit counseling company will use the money in his account to pay off bills in the proper manner. In all reality, borrowers could do this themselves but if they are seeking debt management than they have probably not been very good with money in the past.
Over the next several months many Americans will seek a debt management plan from a credit counseling company. Before deciding this is right for you it is extremely important to do your research and make certain that you are getting what you pay for.
Author: Heather Best
Tags: credit counseling company > debt management > debt management plan > debt plan > ftc debt > ftc debt management > government debt plan