Consumer debt specialists help individuals who are interested in pursuing debt settlement as an alternative to bankruptcy. Debt settlement is the process of negotiating with creditors to reduce overall debts in exchange for a lump-sum payment.


Credit counseling provides consumers with guidance on consumer credit, money management, debt management, and budgeting. The goal of most credit counseling is to help a debtor avoid bankruptcy if they find themselves struggling with debt repayment.

Frequently Asked Questions

What is credit consultant?

A a credit consultant helps a consumer with credit repair, typically through bill settlement and debt management. Duties include reviewing revenue for a customer and creating a plan to help them manage or pay off debt.

What is debt management services?

Debt Management Services (DMS) helps federal agencies and state governments collect debt (the money owed to them).

What is a debt officer?

A Debt Collector, or Collection Specialist, work with customers to collect their outstanding debts to an organization.

How do you do a credit consultation?

To get started, you can try the Financial Counseling Association of America, on their website or by phone at (800) 450-1794, or the National Foundation for Credit Counseling, on their website or by phone at (800) 388-2227.

What are the two major activities of the Consumer Credit Counseling Service?

Consumer credit counseling service agencies are Internal Revenue Service 501(c)93) nonprofit organizations that will help you find a workable solution to financial problems. Each CCCS agency offers a common set of services, including financial education, budgeting assistance, and debt management plans.

What do you call someone who collects debts?

A debt collector is a person or agency who collects payment for an overdue debt. They work on behalf of the lender or business that you owe money to. It’s often more cost-effective for companies to hire debt collectors than to continue to spend their own time and money to try to get you to pay.

What qualifications do you need to be a debt collector?

Most employers require a bachelor’s degree to work as a debt collector. You can pursue an undergraduate degree in an area of studies such as business, finance or accounting. Some students also pursue communications because this can provide knowledge to find and contact those with debts.

Is debt Counselling a good idea?

If you are over-indebted, a debt counsellor can negotiate with your credit providers on your behalf to get lower interest rates and reduced monthly instalments. This makes your debt more manageable and teaches you accountability as your agreement with your debt counsellor can fall away if you miss a payment.

What is the difference between debt and credit?

While both words have to do with owing money, credit and debt are not the same. Debt is the money you owe, while credit is money you can borrow. You create debt by using credit to borrow money.

How long does it take to rebuild your credit history?

If you’ve had a major setback, it usually takes about one to two years to repair your credit, according to Weaver. But that depends on your individual situation. For example, FICO research shows that it takes about five to ten years to recover from bankruptcy, depending on your credit score.

What credit score is bad?

The company says a credit score is poor if it’s between 500 and 600, while a score from 300 to 499 is called very poor. “In general, people with higher scores can get more credit at better rates,” VantageScore says.

Is a loan a debt or credit?

A loan is a form of debt but, more specifically, is an agreement in which one party lends money to another. The lender sets repayment terms, including how much is to be repaid and when. They also may establish that the loan must be repaid with interest.

What is an example of credit?

An example of credit is the amount of money available to spend in a bank charge account, or the funds added to a checking account. An example of credit is the amount of English courses need for a degree. Credit is defined as to give honor to someone or to give money back to an account.

Is debt Counselling free?

It runs a free online debt-counselling service Debt Remedy available 24 hours a day. You don’t need to give your name. The service can help you to reach a realistic budget, so you can clear your arrears over a realistic period of time.

Do you have to pay for debt management?

Many debt management plan (DMP) providers charge a fee for their services but some don’t. It’s important to remember that if you don’t want to pay a fee, you don’t have to. You just need to choose a free provider.