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This concise writing will show you some of the problems with online consumer credit counseling programs. These are the issues that turn in a failure rate of over 80% of the people who enroll themselves in these programs. Debtors should be conscious of these facts before they get themselves into a online consumer credit counseling program to ensure themselves they are making a beneficial financial move.

1. A great number of the online consumer credit counseling organizations are made and funded by the actual credit card issuers themselves. They serve as a sort of middle man for the credit card company to collect the debt amount owed.

2. The online consumer credit counseling organizations work for and represent the credit card companies; they do not work on behalf of the client. The credit card companies stateto the credit counseling company the monthly minimum payment requirement, and the APR. There is no compromise at all on this.

3. The online consumer credit counseling companies should be able to reduce the APR, however they can't actually reduce the principal balance. The normal interest rate on one of these programs is around 12% which is more in the middle than actually being very low. By not lowering the principal balance they are not really a method of debt reduction, this is just an accelerated payment program.

4. You will end up actually putting out more than the original debt amount, due to the monthly fees, interest and reduced monthly payments which greatly bumps up the amount of time you are going to be trapped in debt.

5. It does have a short term bad impact on your credit score/report and is made a public record on your credit report, during the time you are in the program.

6. Attaining a home loan while on a online consumer credit counseling program can become extremely hard, borderline impossible.

7. Here is the number one reason people fail and read extremely carefully. If you miss only one payment while on a online consumer credit counseling program you will be kicked off and the creditors will not allow you to re-enroll into another program for a year. Placing your credit card debts right back to where they were before, high interest and all. This is the reason why over 75% of the debtors enrolled in these programs drop out.

Relax for a second and think about this. They put you on a online consumer credit counseling program that may last 5 years or more. We all know the adventure that is life has its ups and downs. If you find it very tight to be on the program in the first place you will fail off. Any unpredictable financial problems as big or small as they may be can contribute to you missing just one payment and getting the boot from the program. You need to seriously think about how constant your finances and income security are before enrolling into a consumer credit counseling program to evade being part of that 80%. The bottom line is those with a larger amount of debt such as $20,000 or more should really lean more towards credit card debt settlement than credit counseling. Credit counseling is more reasonable for those with much lower sums of debt that do not have much of any quarles keeping up to date with their accounts in the first place. If you are searching for a way to reduce your debt and get out of debt fast, then credit counseling is just not the way to go.