If you’re considering filing for bankruptcy, you may wonder why banks seem to own every credit counseling service company out there – companies that will charge you fees to help reduce your debt. It turns out that this is more than just a coincidence, and in fact, there are some very strategic reasons behind banks owning these companies. Website - https://c4credit.net/

2. WHY DO BANKS OWN CREDIT
COUNSELING SERVICES COMPANIES?

3. HOW DEBT CONSOLIDATION WORKS
If you’re considering filing for bankruptcy, you may wonder why
banks seem to own every credit counseling service company out
there – companies that will charge you fees to help reduce your
debt. It turns out that this is more than just a coincidence, and in
fact, there are some very strategic reasons behind banks owning
these companies. Find out more by reading this article on why do
banks own credit counseling services companies?
A lot of people think that their credit counseling service is working
for them when really, it’s working for the bank. That’s because
most credit counseling services are owned by banks. The way debt
consolidation works is that you make one payment to the credit
counseling service, which then pays your creditors on your behalf.
This can be a good way to get out of debt, but you need to be
careful.

4. CHECKLIST FOR DEBT CONSOLIDATION
OPTIONS
For example, if you’re just paying off your credit card balance and
not paying off other types of loans like auto loans or student loans,
all you’re doing is transferring what could have been more
manageable debt into more difficult-to-manage debt. If you owe
$5,000 in student loans and only $2,000 in credit card balances,
consolidating those two debts into one payment would be much
better than consolidating all your debts into one loan.
There are a few things to consider before diving into debt
consolidation. Namely, you’ll want to make sure that the company
you’re working with is legitimate and has your best interests at
heart. You’ll also want to know what type of debt services they
offer and how much it will cost.

5. AVOID THIS COMMON MISTAKE
A free credit report may also be beneficial so you can have an idea
of what other options might be available for you in the future.
Furthermore, if you’re married, then your spouse should get
involved in the process as well since it’s not just about you but
about the two of you. Lastly, don’t stop saving money now or
spend more than necessary because that could lead to more
financial woes down the road.
Many people are surprised to learn that banks own credit
counseling services companies. The reason for this is that banks
profit from the high-interest rates that these companies charge.
Credit counseling services companies typically charge very high-
interest rates, which can make it difficult for consumers to get out
of debt. If you’re considering using a credit counseling service, be
sure to do your research and choose a reputable company.

6. HOW DOES DEBT SETTLEMENT WORK?
You should never have to pay an upfront fee or sign any contract
without reading the fine print first. You should also be aware that if
you use a credit counseling service, they may negotiate with your
creditors on your behalf to lower what you owe them or even stop
certain types of collection activity against you.
Debt settlement is a process where you negotiate with your
creditors to pay off your debt for less than what you originally
owed. This can be a good option if you’re unable to make your
minimum payments or you’re facing foreclosure. However, it’s
important to know that debt settlement will hurt your credit score.
It will typically lower your score by up to 200 points and may take
up to seven years before it has any positive effects on your credit
report.

7. THE TOP 3 THINGS DEBT SETTLEMENT
CAN SOLVE
1. If you have unmanageable debt, are struggling to make minimum
payments, and fear you may default on your obligations, debt
settlement can help.
2. If you are being harassed by creditors or collection agencies,
debt settlement can put an end to the harassment.
3. If your credit score has been damaged by late payments, missed
payments, or charge-offs, debt settlement can help improve your
credit score.
IS IT CHEAPER TO FILE BANKRUPTCY?

8. Filing for bankruptcy is a process that allows individuals or
businesses to eliminate some or all of their debts. The decision to
file for bankruptcy should not be made lightly, as it will have a
significant impact on your credit score and ability to obtain future
loans. However, in some cases, it may be the best option available.
If you’re considering bankruptcy, you may be wondering if it’s
cheaper to file for bankruptcy than to continue making payments
on your debts. In many cases, it can be. That said, several factors
determine how much each scenario costs.
To determine which is better for you, consider these factors:
1) Are there fees associated with filing for bankruptcy?
2) How long will it take before you begin seeing positive effects on
your credit report from filing for bankruptcy?
3) Will filing for bankruptcy put a dent in your assets and income
now, but improve them later down the line when you qualify for
new loans?

9. WHICH IS BETTER FOR YOUR SITUATION,
DEBT SETTLEMENT OR BANKRUPTCY?
4) How much debt do you have relative to income?
5) What is the interest rate on your debts? 6) What sort of legal
consequences might be involved in filing for bankruptcy versus
continuing to make payments on your debt?
7) How much would it cost you (in both time and money) to make
higher monthly payments towards your debt while looking into
other options like restructuring, borrowing money from family
members, etc.?
It’s no secret that many people are struggling with debt. The
question is, what can you do about it? You may have heard of debt
settlement and bankruptcy, but which one is better for your
situation?

10. Bankruptcy allows the debtor to keep their property, while debt
settlement results in a lump sum payment to creditors. Bankruptcy
tends to be more expensive than a debt settlement plan because
the debtor has to file a petition in court, find an attorney, pay the
fees up front, and then wait six months or more before they get any
relief from their creditors. Debt settlement usually involves the
debtor making payments to a third party over time, who negotiates
a lump sum payment with creditors on behalf of the debtor. Debt
settlements often result in lower monthly payments for years
compared to bankruptcy.

11. CONTACT US:
Address - Atlanta, GA
Email - support@c4credit.net
Phone - (800) 531-1558
Website - https://c4credit.net/
Blog - https://c4credit.net/why-do-banks-own-credit-counseling-
services-companies/