Have you decided to do something about your financial future but don't know what method to choose? You can choose a debt settlement plan, credit counseling, debt consolidation or bankruptcy.
In this article we will only discuss about the first two options and what are the advantages and disadvantages of each.
What is credit counseling? Also known as debt counseling, credit counseling is a method that helps people manage their spending and incomes by making a plan and analyzing the way they spend their money.
This usually means that they have to come up with a plan together with the debt counselor.
This plan is usually called a debt management plan and it involves lower interest rates negotiated with the creditor; also some fees can get cut and people can also get reduced payments in order to afford paying back what they owe.
The counselor analyzes the way you spend money, the needs you and your family have, and how you can benefit at maximum from the financial offers.
Usually you can even get to do one monthly payment instead of multiple payments if you have more loans or more credit cards.
Also, sometimes they can even get you reductions in the debt you owe; however, these reductions can only be 10 or 20 percent of the amount you owe which is less than you get if you opt for a debt settlement program.
Which brings us to my favorite method of debt elimination: debt settlement programs.
Debt settlement can help you reduce your debt by more than half and will help you become debt free and pay the rest of the amount in 2 or 3 years.
This is more advantageous than any method on the market and if you suit its conditions you should definitely opt for it.
The conditions are: unsecured debt and owing more than 10 000$.
The good thing about debt settlement is the fact that the program is flexible and if you can't afford to pay the rest of your debt in only one sum you can opt to pay it in small installments each month.