What is a credit counseling agency?

A credit counseling agency is a non-profit organization that helps people with consumer debt. These agencies provide counseling services to help the consumer learn how to manage their finances more effectively and ultimately repay their debts. They are typically funded by grants, government assistance, and private donations. Credit counseling agencies also offer debt consolidation plans, which involve combining multiple debts into one single payment. In Ohio, the Consumer Debt Defense Law is designed to protect consumers from predatory lenders or other financial institutions that are charging exorbitant fees or interest rates. It requires credit counseling agencies to be licensed by the Ohio Department of Commerce. Before working with any credit counseling agency, consumers should make sure that the organization is licensed and meets all government regulations. Credit counseling services can be beneficial for those who are struggling with their finances. A knowledgeable credit counselor can help a consumer develop a budget, identify areas of unwise spending, and recommend ways to reduce debt. Additionally, a credit counseling agency can help a consumer create a repayment plan and provide guidance on debt relief programs and services. Ultimately, it’s important for consumers to research and understand the credit counseling options available before making any decisions.

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What is a credit counseling agency?

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