If Credit Counseling Agencies are Nonprofit, Why Do I Have to Pay Fees?
Here’s Why You Have to Pay Fees Even for Nonprofit Credit Counseling.
Why do I Have to Pay a Fee to Join a Debt Management Program?
Since debt management programs are administered by nonprofit credit counseling agencies, people often wonder why the service isn’t completely free. Consolidated Credit’s president Gary Herman explains why the fees exist, what they cover and how the bulk of the services that a credit counseling agency provides are covered by creditors, rather than the consumers who enroll in these programs.
[On-screen text] Ask the Expert – Why Do I have to Pay a Fee to Join a Debt Management Program?
Gary Herman, President of Consolidated Credit: Virtually every nonprofit credit counseling agency charges fees to its clients for the services it provides. These fees simply cover our costs associated with providing the services. There’s no profit or extra dividends or money built into the fees that we charge. And a good portion of what we do is paid for by your creditors.
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