When it comes to credit counseling, there are some myths that may discourage consumers from trying to get debt help.
Recently, San Francisco Chronicle columnist Erica Sandberg wrote about discrediting some myths when it comes to debt. One of those is that credit counseling may hurt a consumer’s credit score.
"Counseling is nothing more than meeting a financial professional and discussing your money and credit issues," Sandberg wrote. "The counselor will not turn around and make a report to a credit bureau, lender, or anyone else but perhaps the company they work for."
However, Sandberg did note that if a consumer decides to take part in a credit counseling service’s debt management plan, the bank the payments go through may report a consumer’s participation to credit bureaus.
When it comes to debt settlement, Sandberg also noted that it is up to the creditors to decide whether to join in an agreement with a consumer. According to recent reports, many credit card companies have been more willing to enter into debt settlement in order to get at least some of their money back. Consumers should attempt to approach their card companies to see what kind of deal they may be willing to offer, though it may affect their credit score.