Credit and debt counseling consolidating

Working with a consumer credit counseling service compared to a debt settlement program will result in a stark contrast regarding elements that will matter a great deal to many of us. Debt negotiation companies and sales reps are quick to use the lower monthly payment method as a description for how settling debt is affordable.But the difference between how your now “affordable” payment with a debt negotiation approach can impact you, compared to using credit counseling, is dramatic.

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I will make some other comparisons between credit counseling and debt settlement.

In the process I will describe how your lower monthly payments work between the two. A DMP works to reduce your debt because the credit counselor has preset lower payment concessions worked out with most credit card lenders, department stores, gas cards etc.

I need lower monthly payments on my credit cards because I have less income from a change of job. What else can I use to compare a credit counseling program with a debt settlement program other than the lower monthly payment?

I am comparing the lower payments with consumer credit counseling services and the lower payment quoted by a debt settlement company. I know you guys do settlement and I might ask you to help me if I go that route instead of the other company who has way high fees compared to you.

One of the larger companies offering debt settlement calculates their service fee at 22% of your balances at the time you start the program. Dividing the $12,400.00 by 36 means your monthly payment on the debt settlement plan will be $344.44.

There are too many variables to list from one persons situation to the next, but some generalities can be easily applied to each of us.Your monthly income is not enough to keep up with your debts now, otherwise you would not be on the internet looking for debt solutions. That is why the majority of debt settlement programs are represented as a lower monthly payment – using your monthly income.Debt settlement requires you to have missed payments to creditors in order for the “something is better than nothing” principle that powers successful negotiations of debt to kick in.If you are quoted a 36 month debt settlement plan, the lower monthly payment would be 0.That would be similar to the average monthly payment using a credit counseling service.Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you.

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