On paper debt consolidation and credit counseling services are here to help people with credit repair as well as generally easing the financial burden should it become to difficult to manage. To tell the truth about credit counseling services many of these organizations are funded by the very creditors you owe money to.

In order to be eligible to receive help from debt consolidation and credit counseling services you must first fulfill some requirements like being employed and having a stable income. When you sign up for credit counseling and repair training you will get help from your personal counselor who will on your behalf contact your creditors and try to get a better payment terms.

Once your counselor contacts your creditors your chosen debt consolidation and credit counseling service will try – or at least that is what their commercial says – to get you longer payment period and lower interest rates.

However, what you should know is that many of these credit counseling and repair training services are simply calling people who actually finance them.

How does this relates to you?

Well this means that you are actually again paying the same people that you already owe money to. This also means that it is not in their best interest to help you and reduce your payments and interest rates, unless they will squeeze even more money out of your pockets by letting you have those longer payments.

Such debt consolidation and credit counseling services do actually employ professionals who do have skills needed to help you with your debt management, but since they are for the most part funded by the creditors they will not offer you any good, solid advice that could actually help you relieve some of your debts.

So you see the truth about credit counseling services is actually a bit more on the shady side then most people think. However, there are also good and honest, many times even free debt consolidation and credit counseling services who will work their but off in order to help you. Don’t jump on the first commercial you run in to, do the investigation and choose your credit counselor wisely.