What is the difference between debt settling and Consumer Credit Counseling ?
A. Debt Settlement and consumer credit counseling are different in most respects. Most credit counseling companies have a non-profit status. Most consumers believe “non-profit” with “charity” and believe there is no charge for services. But, Consumer Credit Counseling Companies employ thousands of people and make thousands of dollars each month. Debt Settlement will reduce the overall amount of debt one has by negotiating agreed payoff amounts with each creditor. It can save you thousands of dollars and years of repayment. In Credit Counseling you typically meet with a Credit Counselor, who analyzes your unsecured debts, other obligations, and your monthly income. The credit counselor then devises a monthly budget and presents a plan that will lower credit card interest rates and occasionally, the monthly payment. The Credit Counseling Company will then contact all your Creditors and request that you be permitted to enter the bank’s hardship repayment plan at a lower interest rate. Mos
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