Wednesday, May 17, 2006

Credit Counseling Agencies are Bunk

The IRS is basically gutting the entire "credit counseling" industry, saying these nonprofits don't deserve their nonprofit status because of endemic corruption, herding people into plans where the payments are so low their debt just climbs higher.The 40 companies stripped of their tax status account for 40% of the industry's revenue. Heavy duty irony here--these are the guys (besides collectors) who make the profits off peoples' debt.

1 comment:

Sponduliqs said...

Credit Counseling is a highly, very highly, profitable business. Just because they say they are "non-profit" does not mean they are not making money.

They are.

By the boat loads.

I think that the IRS has finally begun to do something right here.

The scores of people that I have talked to that are heavily in debt and have used Credit counseling and ended up in a worst situation is staggaring.

If people can afford Credit Counseling then they don't need it.

If you are in debt and need options to get out and avoid bankruptcy, then there are plenty of those options. Just do your homework and make sure you get the right option for your situation.

Jae Burnham
CEO & Founder