Debt Consolidation and Debt Counseling?
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Answer:
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.
Do not use one of those companies. I do debt collections for a living. They are the worst thing you can do,,,
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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