How is Debt Negotiation different from Debt Consolidation and Credit Counseling?
Debt negotiation, If you and your debts are approved, the attorney and his affiliate partners will negotiate with your creditor’s total debt to an amount you can actually afford. The average settlement amount is less than 50% of the original amount of debt. The service fee is very affordable and the duration of time is about 18-50 months to complete the program. Debt management & credit counseling involves consolidating existing debts into one easy payment and reducing interest rates down to an average 8-10%. Although an individual approval process takes place, just about everyone qualifies with DMP & Credit Counseling type programs. Typically with a Credit Counseling program lasts about four to seven years as opposed to debt negotiation that lasts about three years. Either option is an insignificant period of time compared to the standard 15-40 year period it can take making minimum payments only.
