Debt Counseling Vs Debt Settlement

Debt counseling and debt settlement often go hand in hand.
However, they are different.
Debt counselors often use debt settlement for consumers, but you can go about settling your debt on your own with each of your creditors.
Debt counseling is the process by which a consumer uses a debt counselor to help them with their financial situations.
The counselor assists the consumer with making money plans and budgets for the future and can help them get out of debt faster than on their own.
It often even helps save people from losing their homes or having to declare bankruptcy.
They are able to do financial magic that the regular consumer cannot usually get on their own.
They can help the consumer lower (or even eliminate) interest rates on credit cards, lower monthly payments on debt owed, and even lower the balances on some outstanding debts by debt settlements.
The process most often used to go about these dramatic changes is the debt counseling process.
This process can take up to sixty days and helps the consumer with their financial situation immensely.
During the process the debt counselor negotiates with the consumer's creditors on rates, monthly payments and more - like debt settlements.
They are trained to know what to do to help get you the best options possible for your personal financial situation.
Debt settlement is a fast and effective way for the consumer to eliminate credit card debt.
With the settlement, the consumer only has to pay a portion of what is owed on the debt - not the whole balance currently owed.
The amount settled for varies greatly.
Anywhere from 30-80 percent of what is owed could be the new balance.
One of the biggest benefits aside from the lower balance is that once the debt is settled, the consumer avoids interest fees which could be thousands of more dollars saved.
Debt settlement can be asked for on your own.
However, you will often get the better settlement option if going through a reputable credit counseling agency.
Their trained and certified counselors know what to do, what to ask for, and how to go about asking for it for you.
Plus, they can do this on all of your current debt owed.
It is often well worth it to go this route and investing in a little extra time and money to do so for your future financial benefit.