Consumer Credit Programs

Consumer credit programs help clients create plans to get out of debt, manage spending and learn to stay out of debt. Consumer credit programs particularly benefit individuals who would like to learn more about the root of their spending behavior or learn how to manage their finances effectively.

Debt Settlement Program

Debt settlement programs are best for those who can no longer make the minimum monthly credit card payments. A consumer credit program that assists with debt settlement assigns a counselor to communicate with a customer's credit card companies on his behalf over the phone or with a formal letter. The goal of the counselor is to reduce the amount of debt the customer owes on each card or reduce the interest rates. Credit counselors who offer debt settlement programs hold the belief that a credit card company would prefer to receive a reduced payment from a customer instead of no payment at all.

Debt Consolidation Program

A debt consolidation program pays off a customer's credit card debt on her behalf so she only has to repay the consumer credit program instead of various credit card companies. Debt consolidation programs advertise that they offer lower interest rates because a customer only needs to make payments to one creditor. Debt consolidation programs are good as a quick-fix solution, and are most effective for those who have committed to not incurring debt while participating in the program. The best debt consolidation programs are upfront about all their fees and teach customers how to manage their money.

Credit Counseling Programs

A consumer credit counseling program helps individuals pay off credit cards by setting up a debt management program, teaching them how to create a budget and evaluate spending. The Federal Trade Commission (FTC) states that good credit counseling programs are those who hire employees who are certified to provide credit counseling services and provide guidance to help customers repay debts with the use of effective money management. Some credit counseling programs offer public workshops free of charge about financial topics, such as saving money for large purchases.

Credit Card Assistance Program

Instead of using a consumer credit program that may charge fees to help a customer get out of debt, an individual can call his own credit card companies. Credit card companies often provide consumer programs to those experiencing a financial hardship and assist by reducing the interest rate a customer pays or by adjusting the monthly payment amount to one that the customer can afford. A consumer can learn more and gain access to a credit assistance program by explaining his financial circumstances to a customer service agent.