Debt Settlement Vs Credit Counseling
Epic Debt Relief is a debt settlement company. We do not work with credit counseling, so this article is simply designed to offer information so that consumers can make educated decisions about their debt settlement and negotiation options. There are a variety of things that need to be considered when it comes to the debate between debt settlement and credit counseling. The situation is different for everyone, and will be up to you to determine.
Consumers are currently faced with what seems like the never-ending burden of overwhelming debt, and many have discovered that they can no longer afford their monthly financial obligations. If this sums up your situation there’s hardly a doubt that you’re in the process of determining the best path in order to eventually live a debt-free lifestyle, or at the very least be able to easily afford your monthly bills.
There are many non-profit credit counseling agencies, and of course, since the business is non-profit, this typically means that you do not have to pay for that counseling. What you need to understand is that in most cases, these companies do not settle your debts for you. Instead, they teach you how to settle the debts yourself, or put you in touch with a for-profit, legitimate company that can help you settle your debts if that is needed. These organizations will also help you to create a budget that you and your family can live with.
When using the internet to find free credit counseling, you have two great options. You can do the bulk of the research yourself or use the services of a debt relief network. These networks work with several different relief companies and they are all the best in the business. Each relief network tracks, monitors, and constantly tests the level of service provided, the legitimacy of all claims, and so forth. As a consumer facing thousands of dollars of debt, you can take comfort in knowing you are connected with a true professional.
Debt settlement works slightly differently. First, you must have already defaulted on your payments for this to be an option. Once that happens, the debt settlement agency works with the companies you owe to reduce the principle balance you are to repay. Since you are defaulting on a loan, there are some risks involved. Your credit score will go down and there is a possibility of being sued by the credit card companies. It is rare but has been known to happen. The companies agree to reduce your balance since it is more profitable for them to get some of the money than none of it. Debt settlement may get you out of debt more quickly, but it harms your credit score, making purchases more difficult in the future. It is up to you whether you are comfortable with this method of debt relief.
Therefore the debt solution must be based on the need and requirement of the customers. Which needs to be completely clear about the current liability and tracking system in few months time. If the dealing process by the settlement company is not transparent in disclosing the fee and charges. If you keep in mind these essential critical points while dealing with the settlement company. You will get a better deal and lead a debt free life.