Debt settlement and credit counseling are both very popular options for debt relief and if you have debt you may have to choose between the two alternatives. They are very different and your choice will depend on how old your debt is, how much debt you have and what your capability is for repaying this debt. If you would like expert help deciding what will work best for you a credit counseling agency can provide that, because they work with all types of debt relief methods.
If you have old debt or debt that you are positive you cannot pay in full, debt settlement may be the route that you should take. Keep in mind; this is an alternative that is considered a last resort before bankruptcy. Settling the debt will satisfy it, but it will not be kind to your credit and you will be accessed income tax on the amount of the debt that is forgiven.
If you opt to settle your debts, do it on your own. Do not use a debt settlement service. They can be very pricey and you will make several payments before they even begin negotiating with your lenders. Once you have reached a settlement, you will have to make payment relatively quickly. Get all terms in writing; get a release of debt document and a receipt. Make sure that you keep these documents in a safe place. You will most likely need them at some point in the future.
Credit counseling will help you manage debts that are current that may have gotten out of control. This is a consolidation program that allows you to consolidate your unsecured debts into an account that requires only one payment each month. It is not a loan, so you do not need to own a home or have good credit. Your interest rates are reduced and your fees are eliminated to allow for quick repayment of your debt.
Which one of these options you choose should depend on how long it has been since you have made a payment, how much you owe and how much you can afford to pay. If you are confused by all this or unsure what will work best for you, contact a nonprofit credit counseling organization. They can give you the guidance that you need to become debt free.
Author Resource:-
Marjorie is an author that enjoys writing about health and finance. You can visit her latest site at debt help services where you can find information on how to consumer credit card debt counseling.
![[Valid RSS feed]](http://newezinearticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
