Are Consolidated Credit Counseling Services Legitimate?

With so many people in debt, credit counselors and debt relief agencies are popping up all over the place. Each of these groups states that they can help get you out of debt, but it's hard to know who to believe. One major player in the debt relief community is Consolidated Credit Counseling Service, who offers credit counseling to anyone who feels they need it.

Credit Counseling Basics

When you place a call to a credit counseling agency, the agency reviews your financial situation with you, including the types of cards you have and the balances on these cards. In most cases, the counseling agency will place you on a debt management program, which aims to get you out of credit card debt within five years. The program usually includes lower interest rates and reduced or eliminated fees, but also requires you to close out your credit cards to help you pay down your debts more quickly.

Consolidated Credit

Consolidated Credit Counseling Services is a company based in Florida, but does business throughout the United States. Like most credit counselors, Consolidated Credit offers a debt management program, but also provides assistance with mortgages and personal financial management. The company advertises frequently on television and radio, which promotes the company's desired image of compassion and legitimacy.

Consolidated Credit Accrediations

Consolidated Credit Counseling Services is a nonprofit organization that is a member of the Better Business Bureau. The group is a member of the Association for Financial Counseling, Planning and Education as well as Association of Independent Consumer Credit Counseling Agencies. In fact, Consolidated Credit's president, Howard Dvorkin, was once president of the AICCCA. Consolidated Credit is also a partner of the United Way of Broward County, Florida.

Consolidated Credit Reviews

Consolidated Credit posts success stories from customers on their site, but these reviews are hand-picked by the organization and may not reflect the experiences of the average customer. However, customer feedback given to outside organizations has been very positive. Consumer feedback site Customer Lobby gives Consolidated Credit a five-star rating. Since customers are far more likely to complain about a bad experience than they are to praise a positive experience, this rating speaks very highly of the company. Furthermore, Forbes.com ranked Consolidated Credit as their Best of the Web in the debt management category.