In a credit card debt settlement program, a trained negotiator helps you get free from your debts by settling with your creditors for a fraction of the amount you currently owe. It only takes 12 to 36 months, and lets
you get on with your life faster than most other debt relief plans.
Credit counseling, on the other hand, is quite different from debt settlement:
- Unlike credit counseling services, credit card debt settlement companies do not negotiate lower rates on your total balances – they reduce the balances themselves, meaning you pay much less to free yourself from debt.
- Debt settlement companies help you to achieve your debt
relief goals much faster – in three years or less – rather than
5 to 7 years with a credit counseling service.
- Unlike credit counseling services, debt settlement companies
do not gain financially from the creditor. Credit counselors
receive “donations“ from creditors, which creates a conflict of
interest. In other words, if a credit counseling company can
talk you into a higher rate, they may get a larger “donation“
from your creditors.
- While the credit card debt settlement process delivers a short–term “ding“
on your credit report, credit counseling services can have a
longer lasting effect since you carry balances much longer as
you wait for the debt relief program to finish.
- Contrary to popular belief, credit counseling actually has a
high failure rate – as high as 80%. This is estimated to be due
to the long–term nature of the debt relief program as well as
the sense that you are still trapped in significant debt for a
longer time, inching your towards debt relief at a slow pace.
What Option Is Most Appropriate For You?
While credit counseling services offer a “quick fix“ in the sense that they reduce your overall interest rates, they don’t necessarily guarantee you are going to get out of debt faster. In fact, by lowering your payments they may actually condition you to stay in debt far longer than you should.
Debt settlement on the other hand is a more aggressive strategy for wiping out your debt and has been used with success by thousands of people across the country.
As with any credit card debt relief solution, the answer to “What’s right for me?“ is different for every person. To find out if credit card debt settlement is right for you, give one of our trained debt settlement negotiations a call right now and get a personal consultation that will help answer your questions about debt relief.
Call 1-877-956-1500