What is the difference between debt settlement and consumer credit counseling?
With both shorter program durations and lower budgeted monthly payments, debt settlement programs frequently see higher success rates and fewer dropout rates. Other differences between credit counseling and debt settlement are:
Debt settlement companies do not receive any fees, contributions or other forms of compensation from any entities other than the debtor clients. Meanwhile, credit counseling companies get money each month from their customers, plus they receive "contributions" from credit card companies and "fair shares" from banks.
Debt settlement programs are typically 48 months or fewer in length. Credit counseling programs are usually 60 months or more.
For consumers that complete programs, the total cost of a debt settlement program is usually about half the cost of a debt management program offered by a credit counseling company.
Debt settlement programs achieve individualized and customized results depending on a consumer's circumstances and needs. Credit counseling payment plans are fixed payments over a length of time.
Q: Who is qualified for a Debt Consolidation and Settlement Program?
Q: How soon will my accounts be settled?
Q: How does debt consolidation and negotiation compare to bankruptcy?
Q: Will debt settlement hurt my credit?
Q: What is the difference between debt settlement and consumer credit counseling?
Q: Do I have to include all my accounts in a debt consolidation and settlement program?
Q: What if my creditors won't settle?
Q: How long does a debt negotiation or debt settlement program take to complete?
Q: What kind of accounts qualify for a debt consolidation and settlement program?
Q: What are the possible tax consequences for a debt that has been settled?
Q: Will I continue to get calls and correspondence from debt collectors?
Q: Will interest and late charges accrue on my accounts while I am in debt settlement?
Q: Can I settle my accounts on my own?
Q: Is it a good idea to borrow from my 401k retirement plan to pay off my credit cards?
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| Our Program | Debt Consolidation Loan | Credit Counseling | Minimum Payments |
|
| Total Unsecured Debt | $30,000 | $30,000 | $30,000 | $30,000 |
| Months To Pay Off | 46 | 60 | 60 | 433 |
| Interest Paid | None | 12% | Variable | 18.99% |
| Monthly Payment | $498 | $667 | $855 | $900 |
| Total Est. Cost | $22,950 | $40,040 | $51,300 | $80,619 |
* The above numbers are an example of past performance and are not intended to be a guarantee of any future settlement results.
