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About Credit Counseling
Credit Counseling
Credit counseling is a service that is typically offered by a Credit Counseling
Agency (CCA). The agency provides financial literacy and also analyzes a
consumer’s debt and spending habits and provides a plan to work out an
achievable budget and debt repayment plan with creditors. By requesting that
creditors accept a longer pay-off period, the counseling service can often
design a successful repayment plan called a Debt Management Plan (DMP). With
the help of a Credit Counseling Agency (CCA), new terms are agreed upon to
satisfy the outstanding debt. Generally the entire balance is paid back;
however the payments and/or interest rates are reduced.
Debt Consolidation Loans
A debt consolidation loan provides funds to consolidate debt into one monthly
payment usually in the form of a home equity loan. This debt consolidation loan
reduces the number of payments going out monthly, simplifying a consumer’s debt
problem. Realistically, this debt consolidation loan does not mean one is
debt-free; the debts have just been transferred. Hopefully, this debt
consolidation loan guarantees a lowered APR, allowing one to pay off the new
debt quicker than if they had not taken out a debt consolidation loan. But even
though this sounds like a good solution to avoid bankruptcy and get out of
debt, it can damage consumer credit and cause a consumer to be forced to pay
back far more than if they had selected a debt settlement
program.
Learn About Our Debt Settlement Services
We invite you to learn about our debt settlement program
and other debt arbitration and debt settlement services. We are sure that when
you compare and contrast debt settlement and debt arbitration to debt
consolidation loans and debt consolidation services you will see that debt
settlement is the only way to go. Find out how debt settlement will put you
back in the drivers seat and determine how much you pay these credit card
companies.
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