Debt help - Credit counseling Vs Debt consolidation loans

[ Bookmark this page! ] [ get HTML Version ]

Credit counseling is not the same as debt consolidation. Debt consolidation companies hire debt consolidation experts who can help reduce or eliminate your debt. A good debt consolidator will explain you the entire process from start to finish and advise you when you need it the most for your financial decisions. On the other hand credit counseling is used for planning your finances. A credit counselor can work with you on creating debt worksheets, debt management plans and pay off your debts and secure your future. In credit counseling, you need an expert who can guide you and help you whereas in debt consolidation you may want to adopt a do it yourself appoach and try to get rid of debt before you revert to a debt counselor expert.



Simple Ways to Solve Debt Burden
Getting Behind

Getting behind on your debts owed can be a very frustrating and trying time for you and your family. Depending on how far behind you are, there are other repercussions, such as your credit rating, that will affect you further down the road.

Examine Why

Why did you get behind in the first place? This is a very important question in helping you understand ... Read debt consolidation article



Debt help - Credit counseling Vs Debt consolidation loans
Debt consolidation loans are a do-it-yourself process, whereas credit counseling helps you to make financial decisions. If you already have a financial plan, then you probably don't need the services of a credit counselor. However, if you have questions or need help with a budget, a credit counselor can offer valuable help.

What Debt Consolidation Loans Can Do For You

Debt consolidation loans can reduce the interest rate you are paying on unsecured debt, like credit cards, and lower your monthly payments. You can choose to use an equity loan with its tax deductible interest or a personal loan. Many lenders offer competitive rates, which you can find by researching companies online.

A loan gives you more control over interest rates and payment schedules than with other options. Not only can you get low rates, but you can decide to take longer than five years to pay back your principal. By taking longer, your payments are lower, giving you financial breathing room.

However, a debt consolidation loan should be part of a larger financial plan that includes budget planning and long term financial goals. If you don't have these things in place, you may find yourself in deeper financial trouble by taking out a loan.

What Credit Counseling Can Do For You

Credit counseling provides confidential financial planning for a low fee. In a non-judgmental atmosphere, a credit counselor can help you define your financial goals and plot a course to get there. They may suggest a debt consolidation loan, debt consolidation program, or other financial options. They will educate you about the pros and cons of each to help you make a decision.

Credit counselors are familiar with all types of financial programs, so they may point you to little known sources for help. They may also help you realize immediate savings by helping you to reduce expenses or lower interest rates on some of your bills.

Credit counseling is really an investment in your financial future. You get a quick crash course on your finances with practical answers. By getting expert help, you can save your credit, saving you thousands.

To view our list of recommended debt consolidation companies online, visit this page: Recommended Sources for Debt Consolidation Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

What do you want to do?
Bookmark this page before you lose it
Search this site for FREE information
Help spread the word. E-mail this page to a friend

Debt consolidation company information - How to compare debt consolidation companies online

Not all debt consolidation companies are the same. Some are in the business of offering you a service to pay off your bills and clean up your credit history. Others take advantage of your situation and scam you out of your money. To protect yourself from such companies, compare programs based on their services and promises.

Non-profit Versus For-profit

The only difference between non-profit and for-profit debt consolidation programs is how they file their taxes. Some of the largest fraudulent companies claimed non-profit status.

However, there are many legitimate non-profits. Some of these companies are subsidized in part by creditors, reducing fees you would have to pay. This is especially true for agencies which cater to those with poor credit.

Legitimate for-profit companies charge comparable rates, but they usually focus on those who still have a good credit score but are struggling to pay bills. Like a non-profit, they can reduce your interest rates for most types of unsecured loans, making repayment easier.

Monthly Payment Quotes - The Litmus Test

The real litmus test to find a credible debt consolidation company is to request a monthly payment quote. By providing information on your account balances, interest rates, and creditors' names, a debt consolidation company can give you an accurate quote. Compare this payment with several other agencies.

Since all companies will get you the same low interest rate with a creditor, there should be very little difference between quotes. Anything too low is a sign of a shady deal.

Services Provided

Besides requesting quotes, you should also research the services they provide. Debt consolidation involves constant communication with creditors to lower rates, remove late charges, and close accounts. Companies that fail to mention what they do for you are probably more interested in taking your money than servicing your accounts.

Also be suspicious of companies that offer debt settlement or bankruptcy help. If they are doing their job, there is no reason to use these credit damaging services.

In the end, take the time to research companies to find one you are comfortable with. By making the investment of time now, you can save yourself headaches in the future.

To view our list of recommended debt consolidation companies online, visit this page: Recommended Debt Reduction Companies Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.


Top rated articles for debt consolidation

1. Bad credit
Bad Credit Though it is an unfortunate reality for millions, bad credit is no longer an insurmountable hurdle standing in the way of people living their lives to the fullest. There are today many lend... Read debt consolidation article

2. Credit Card Debt Consolidation Information
The credit card consolidation is taking all your credit card debt dues and consolidating them into one monthly payment. This way, you don't have to worry about managing the payments individually. Asid... Read debt consolidation article

3. How to consolidate debt using a home equity loan
A home equity loan is a loan based on the difference between what your current home value is and what you currently owe on your house. There are also mortgage companies that will loan a little over th... Read debt consolidation article

4. Credit Card Debt Elimination
Credit card debt elimination can be done with a good plan and a little patience. The important thing is to find what works best for you and stick to your plan. The rewards are well worth it and you'll... Read debt consolidation article

5. Which is better - Credit counseling or filing bankruptcy
People often get to a place where they simply can't pay their bills, especially in today's economy which is not particularly sympathetic toward the poor or even the middle class. Inflation has impacte... Read debt consolidation article

6. How to deal with financial problems
People who have financial difficulties may find themselves in a situation where they know they can't continue making their mortgage payments. If that happens to you, come up with a game pl... Read debt consolidation article

7. Online payday loan sites - What you must know about payday lenders
Payday lenders all over the country are using the technology of the Internet to move their check cashing stores from the street corner to the World Wide Web. The Internet gives customers the relaxatio... Read debt consolidation article

8. Student Loan Payment - Save Big Money
Student Loan Consolidation

You worked hard. You studied late nights and spent hours in the library doing research. You took some grueling exams. Now you're finally through with college and ... Read debt consolidation article

9. Debt Specialist - When you are caught in the debt spiral
We are always hearing in the media how the country is in debt and that many people are also in severe debt but most people think that they have their own debts under control.

I had a friend... Read debt consolidation article

10. Credit card debt problems and solutions
You're burdened with crushing debt and at the end of your rope. There's got to be a way out. You go to the door every day, expecting bad news. Your minimum credit card payments are eating up most of y... Read debt consolidation article

1. Credit Card Debt Consolidation Secrets
2. Consolidating Debt for a Stress Free Life
3. Get out of credit card debt fast
4. Debt help and free advice
5. Debt reduction and debt consolidation without owning a home
6. What to do when debt gets you down - Tips from the pros
7. Money or financial problems - How to prepare a budget
8. Student Loan Consolidation Benefits
9. Debt Consolidation Companies for Good and Bad Credit
10. Credit repair - How to fix it yourself

Debt consolidation, debt counseling and debt management in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



Debt help - Credit counseling Vs Debt consolidation loans
Debt consolidation, debt counseling and debt management services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Debt management, debt counseling and debt consolidation in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.