Debt Settlement vs Credit Counseling

The main difference between the two choices are:

With Credit Counseling you generally payback between 100% to 120% of your original balances with a higher payment, over a longer period of time.

 Both choices will have a minor negative impact on Credit Score till after you exit the program.

Here is a list of how your credit score can be impacted. Fico Score.

Debt Settllement will give you a lower payment for a shorter period of time with the same results DEBT ZERO!!!!!

For a FREE Estimate on how much you can save Click Here

The two choices are explained as follows:

Consumer Credit Counseling

Consumer Credit Counseling is an alternative for consumers experiencing financial difficulties and unable to make their minimum payments. These organizations act as an intermediary between you and your creditors. However, Consumer Credit Counseling organizations typically attempt to reduce interest rate and fees on your debts, not the balances themselves. Through the reduction of fees and interest, Credit Counseling will typically allow you to get out of debt in about five years (each individual circumstance is different). However, you will end up paying back 100% of your balance plus interest, which will require a significantly higher monthly obligation than a typical debt settlement program.

With that being said, a CCC program may be a viable option for those with under $10,000 in unsecured debt, are able to afford higher monthly payment obligations, and are well disciplined to remain in the program.

DEBT SETTLEMENT

Debt Settlement (also known as Debt Negotiation) has proven to be the most cost-effective option to pay off your debts and relieve you of having to file bankruptcy. It is a proactive approach for people experiencing the stress of too much debt. We understand the stress and struggle of living with an overwhelming amount of debt, and our goal is to reduce and consolidate your debt so that you can begin living the lifestyle you`ve been dreaming about…being debt free! If you`re simply paying minimum monthly payments, then surely it feels like you are getting nowhere. Our program is individualized for each customer`s personal and financial situation and level of debt in order to make the process as quick and affordable as possible.

The negotiation process has been tested and developed over several years of experience by our team of the best professionals in the industry. Through the established relationships that we have with the creditors and financial institutions, we are able to successfully negotiate the debts of our customers at a substantial discount. Creditors are willing to negotiate a debt with The Debt Counseling Center, on behalf of our customers, with the understanding that the settled amount will be paid in a timely manner. Furthermore, creditors are always looking to avoid the ineffective and costly efforts of an outside collection company. Additionally we have relationships with the collection companies as well and are able to deal with them effectively as well. We are continually developing our network of creditor relationships which we then use to your advantage.

Debt settlement is a legitimate way of solving your problem without the need for bankruptcy. Our debt settlement specialists work each case individually to determine your eligibility and then, if you qualify, they will establish a program that allows repayment of the debt through affordable monthly payments. This approach reduces your debt vs. other consolidation options. Our approach assists you by reducing the time to repay the debt and by lowering the total amount you owe.