Would you work for free? Would your spouse work for free? Can you convince employees to work for you for free? It is obvious that you will have to pay for the services that you enjoy. In such a scenario, when a card counseling expert offers to analyze your financial situation and counsel you for free, should not be suspicious?
If you are not being asked to pay, who is going to pay for the service? There are two parties involved in any counseling transaction for credit card. One-the borrower whose finances are being analyzed. Two-the card company who has loaned money to the borrower. The counseling expert offers the services of an intermediary and helps both the parties arrive at a common mutual ground.
In theory, this sounds very nice. However, the practical reality is that the common mutually beneficial ground is always tilted in favor of the credit card company. Why? These services are free for the borrower. This means that the card company shall pick up the tab. This means that the so called independent counseling services for credit card are remunerated by the companies.
Now, can you be certain of complete impartial and unbiased advice from the counseling expert? There are numerous experts who are paid by credit card company and yet strive to arrive at a common ground where both the parties benefit. Yet, such experts are very few and very rare.
This is a reason why you should be wary of dealing with any expert who offers free credit card counseling services. Instead, you should prefer to go in for premium services as this will help you retain control in your hands. Another significant advantage of this move is that you can insist on certain aspects and facets of your finances being kept private. This is a very big advantage for those who cannot afford even the smallest rumor about their finances.
The person who pays the money, invariably, retains complete control over the transaction. Hence, the free counseling expert is actually an agent of the credit card company who has been appointed to protect the interest of the company as is or her top priority.
Another significant proof of this fact is the continuing problem of credit card debt despite the presence of counseling services for many years. If they were so successful, bulk of the borrowers should have escaped their credit card debts by now.