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Debt Consolidation and Debt Counseling?

I have some bills that need payed off and I have one credit card. My question is if I go or contact a Credit counselor or Debt help business(Careone credit,debt relief agency) will they freeze my credit card account or put it on hold? My debt situation is not bad, but I've heard that if you seek help through a business that specializes in credit card debt or collections, they will freeze all of your credit cards. I am slowly building up my credit and I would hate to have them take my card away. Is this true? Any one that has or has had this problem or knows the facts please let me know some options.....Thanks!!!!

Public Comments

  1. Do not use one of those companies. I do debt collections for a living. They are the worst thing you can do,,,
  2. when you go through a agency such as consumer credit counseling, you are not allowed to use your credit cards or obtain any new debt. This is not the law or anything, just the rules of the agency. Also most of those agencies are able to get you lower interest and such because they don't pay your bills for 3 months making you 3months late on all your bills. And most of the time when you are 3 months late, the credit card company won't allow you to use your cards.
  3. Actually, credit counseling is an informational session in which you find out what your bills are and how those payments fit into your budget. A certified credit counselor should be able to help you identify opportunities for improving your financial situation. If you need a debt management plan, then you should understand that your credit card companies will be unwilling to lower your interest rates and fees if you are still out using other credit cards. In addition, they do want you to be serious about getting out of debt. It sounds like your situation is one that does not require a debt management plan. A counselor should be able to help you with self-guided strategies to get out of debt on your own without inactivating any of your accounts.
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