Credit Counseling or Debt Settlement –
What's the Best Way to Eliminate Credit
Card Debt Quickly?
by Peejay Goodman
When trying to deal with credit card bills that
have gotten out of control, usually people turn
their attention to one of two things, either
credit counseling or debt settlement. Both of
them are very good ways to keep your credit
score healthy. They also allow you to at least in some ways to
live up to your contractual agreements with your creditors.
Both options are completely different though. So, if you are in
a situation where you might need to use one of these options,
it is important that you understand the differences so that you
can eliminate your credit card debt quickly and efficiently.
Click Here To Easily Eliminate Credit Card Debt
Credit Counseling – For the most part, it isn't
counseling at all. Basically, the “counseling” is
done by non-profit companies who have set up
arrangements with most major credit card
companies. The arrangement is pretty simple.
Because they are non-profit, the creditor is able to
write off any sort of concession that they give you as a
“donation” for the most part. So, the credit counseling agency,
will take all of your debt, lump it together, and then negotiate
with each of your creditors individually. In most cases, the
Credit Counseling or Debt Settlement – What's the Best Way to Eliminate Credit Card Debt
creditors will give deep interest rate concessions. You in turn
send your monthly payment to the credit counseling
organization, who then forwards your payments to the various
credit card companies that you owe. Normally, you can shave a
significant amount off of the total you owe, and pay your debt
off years sooner than you would have.
Debt Settlement – This is pretty much just what it says. You
offer the credit card company a sum of money to settle the
debt. So, lets say you had $5,000 in credit card debt with one
creditor. You could realistically settle that debt for 50% - 60%.
The only downside is, they normally won't accept any sort of