Legal Debt Relief Options – Credit Counseling Vs Debt Settlement

counseling debt settlement
by Dystopos

Legal Debt Relief Options – Credit Counseling Vs Debt Settlement

If you decided to do something about your financial situation, you can choose credit counseling or debt settlement. These two debt relief methods can really help you make your financial situation better again.

Credit counseling is a procedure that implies hiring a counseling company to give you advice about different aspects of your credit. If you plan to take a loan or you want to know how to start your payment plan you need to go to a financial counselor. They will give you advice on that and after analyzing your situation they can make a good payment plan. If you have problem with debt a financial counselor can show you how to cut your expenses and pay it easier. Also, they can make a personalized payment plan after they ask you some questions to see how you spend your money. This way they will know which things are important and which are not. Credit counseling is a great way to get rid of your credit but you will have to find a way to get money by yourself.

Debt settlement is a method used by clients to negotiate remaining debt with creditors in order to get a reduction on it. The reductions can vary from 40% to 70%, but most costumers manage to get more than half of their debt reduced. Debt settlement can be started by hiring a debt settlement company and sending a letter informing your creditor about the decision you make. After all legal documentation is obtained you will start negotiating with the creditor. When both of you reach an agreement, you can decide whether to pay everything that’s left of your loan in a lump sum or choose the installment option. If you choose to pay the installments you will start paying the rest of your loan like you did before, only this time it will be a smaller amount.

If you wanted to solve your financial problems you can choose debt settlement or credit counseling but you will have to know that each of them are fit for a certain type of debt and choosing the wrong one can lead to a worse situation.

Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options. For a free consultation from a debt relief specialist in your area check out the following link:

www.DebtReliefEmergency.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

http://www.DebtReliefEmergency.com

contact us for free debt advice = 8886916918

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