

Once the credit counseling firm advises your creditor that you are signed up for debt consolidation, the creditor will reduce interest rates and drop late charges. The account is re-aged to show that you are current with your payments.
The reason that creditors are willing to do this is simple - they know that if you are seeking credit counseling, you are taking responsible action to avoid filing bankruptcy. If you file bankruptcy, unsecured creditors often receive nothing!
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