Is Debt Settlement the same as Consumer Credit Counseling?
No. Debt settlement does not work like consumer credit counseling in most respects. The goal of debt settlement is to reduce the overall amount of the debt, by negotiating payoff amounts with your creditors. Debt Settlement can save you thousands of dollars and years of repayment. Many Consumer Credit Counseling Companies tout their non-profit status. Many consumers confuse “non-profit” with “no charge for services”, or charity. Non-profit Consumer Credit Counseling Companies may still make substantial amounts of money. The way Credit Counseling works is that you typically meet with a Credit Counselor who analyzes your unsecured debts, other obligations, and your monthly income. A credit counselor then formulates a monthly budget and presents a plan that includes lowering of some credit card interest rates and sometimes, the monthly payment typically around 11% interest. The Credit Counseling Company then contacts all your unsecured debt Creditors and requests that the consumer be perm
