Credit counseling consolidates your debts into one debt so that you can make one monthly payment, which generally is lower than how much money you are currently paying on your debts. Consumer Credit Counseling companies supposedly negotiate lower interest rates, lower payoffs, and lower monthly payments from your creditors in return for a small fee themselves that they usually work into your total monthly payment. Consumer credit counseling agencies are supposed to be looking out for your best interest and non-profit companies; however they do not always help consumers as much as they state they are helping. Many lenders will not lend to someone in Consumer Credit counseling and other lenders may require that you first quit the consumer credit counseling plan in order to obtain financing. Credit counseling is viewed by many lenders the equivalent of bankruptcy and treat consumers in the counseling service with the same underwriting guidelines as those who have had a Bankruptcy.

Credit repair companies will typically dispute the derogatory items listed on your credit report in an effort to get the negative items deleted entirely. In some cases challenging these types of information has actually improved some people's credit scores by over 100 points!

Credit Counseling and Mortgages - Credit counseling in lieu of filing bankruptcy has helped many Americans out of their financial issues. Today, there are lenders who are comfortable lending money with a borrower who is currently in consumer credit counseling as long as the consumer has been on time with the monthly payments.

Many lenders look at credit counseling the same as bankruptcy or just barely a step above bankruptcy. Credit counseling is not always the best route to go to take care of credit card debt. Ask your mortgage professional if there are any options or other ways to deal with your debt first. A debt consolidation refinance can many times save you hundreds and sometimes even thousands of dollars.

If you are considering credit counseling, please speak to a mortgage consultant first if you plan on purchasing or refinancing a home. Entering credit counseling may limit the number of lenders willing to lend to you.

You also may want to try to contact your creditors directly before going to a Credit Counseling Service. Be honest and frank with your creditors and ask them for a decrease in your interest rate. You can ask them to do the same thing the Credit counseling service will. This may help you to retain a respectable credit rating while lowering your monthly liabilities. If for some reason the creditor is unwilling to help, then you can pursue the Credit Counseling. You have nothing to lose.

Also, talk to your CCCS counselor if there is any restriction on refinancing you home mortgage. Sometime, the CCCS threatens to cancel the deal if there is any new debt occurred on the credit profile.