How To Decide Between Credit Counseling And Debt Settlement Plans
- Date: 2010-09-02 - Word Count: 496
Share This!
If your credit card debt is keeping you up at night, there's a strong possibility that you're in the process of determining which path would best suit you so that you can be free of debt and start living again. As a matter of fact, you've probably scoured the Internet for hours at a time, yet still find yourself confused and not sure if Consumer Credit Counseling is your best option or perhaps Debt Settlement may be your path to financial freedom.
Your own personal financial situation is really the most important factor that can best determine the most fitting choice when it comes to your way out of debt. You see, Consumer Credit Counseling is a good choice for individuals whose debt isn't extremely high, and who can commit to a long term repayment arrangement with their creditors. If you should choose to hire a Consumer Credit Counseling agency, they will contact your creditors to negotiate reduced interest rates on your accounts, and set you up with a reasonable monthly payment, which they will distribute to your various creditors. Usually, the entire process will leave you with no further money owed by the end of approximately five years or so. You'll still be required to pay some interest, and the full balance on each of your accounts, but as was stated previously, the end result will leave you with no further debt.
Does Consumer Credit Counseling work for everybody? Well, certainly not. As a matter of fact, I recently talked with an individual who had been enrolled in Consumer Credit Counseling for almost two years, paying out nearly $1,700 per month. What's worse is that the program wasn't scheduled to end and bring this person out of debt for at least another three years. This is understandable because the Consumer Credit Counseling Agency was only able to negotiate the interest rates on this person's accounts down to 16%. Obviously, in this case, Debt Settlement may be the right way to go. You see, based on the amount of money still owed, this individual will be free from debt in less than 18 months if they choose to attempt negotiating with their creditors for a reduced payoff amount (debt settlement). So, as you can see, if Consumer Credit Counseling is not a good option for you, Debt Settlement may be if you can afford to accumulate sufficient funds on a monthly basis, or if you have funds available through a 401K or home equity line of credit. Some people have even borrowed from close family members to successfully reduce their debt through Debt Settlement. If one or more of these opportunities is available to you, perhaps you may want to consider Debt Settlement as a viable path to become debt-free.
In any case, what's most important is that you eliminate high interest credit card debt quickly, because it could take you in excess of 30 years to pay off your debt if you continue making the minimum monthly payments.
Your own personal financial situation is really the most important factor that can best determine the most fitting choice when it comes to your way out of debt. You see, Consumer Credit Counseling is a good choice for individuals whose debt isn't extremely high, and who can commit to a long term repayment arrangement with their creditors. If you should choose to hire a Consumer Credit Counseling agency, they will contact your creditors to negotiate reduced interest rates on your accounts, and set you up with a reasonable monthly payment, which they will distribute to your various creditors. Usually, the entire process will leave you with no further money owed by the end of approximately five years or so. You'll still be required to pay some interest, and the full balance on each of your accounts, but as was stated previously, the end result will leave you with no further debt.
Does Consumer Credit Counseling work for everybody? Well, certainly not. As a matter of fact, I recently talked with an individual who had been enrolled in Consumer Credit Counseling for almost two years, paying out nearly $1,700 per month. What's worse is that the program wasn't scheduled to end and bring this person out of debt for at least another three years. This is understandable because the Consumer Credit Counseling Agency was only able to negotiate the interest rates on this person's accounts down to 16%. Obviously, in this case, Debt Settlement may be the right way to go. You see, based on the amount of money still owed, this individual will be free from debt in less than 18 months if they choose to attempt negotiating with their creditors for a reduced payoff amount (debt settlement). So, as you can see, if Consumer Credit Counseling is not a good option for you, Debt Settlement may be if you can afford to accumulate sufficient funds on a monthly basis, or if you have funds available through a 401K or home equity line of credit. Some people have even borrowed from close family members to successfully reduce their debt through Debt Settlement. If one or more of these opportunities is available to you, perhaps you may want to consider Debt Settlement as a viable path to become debt-free.
In any case, what's most important is that you eliminate high interest credit card debt quickly, because it could take you in excess of 30 years to pay off your debt if you continue making the minimum monthly payments.
Related Tags: money, finance, loan, mortgage, stocks, self help, business, investments, savings, bills, checking
Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are