Difference between Debt Management and Debt Settlement
October 7, 2011 in Debt Relief
Many people are confused about difference between Debt Management and Debt Settlement, really both Debt Management and Debt Settlement are really confusing out for people who are suffering from debt problems and financial crisis. Actually there are lots of debt options and when people are in financial trouble they need to get honest advice about debt programs.
There are lots of debt scams are prevailing in the market and these debt companies are taking advantage of these financial desperate people. Unfortunately people with debt needs to educate themselves about where to go and what to do with their current debts. Credit counseling or Debt Management and debt settlement are two polar opposites and they have nothing to do with each other.
As consolidated credit counseling service or Debt Management Company, the credit counselor needs to work out with payment program with creditors. It is advisable to hire a debt consultant company which have national contracts with credit card companies of United States, so that debt consultants can work out with legitimate and systematic debt repayment plan. The debt repayment plan which a person is going to make a payment and pay-down a debt which in return credit card company is going to lower down the interest rate and stop any debt collection process.
Basically credit counseling can help in liquidate the credit card account over the time which is essential stop paying bills, pay this credit company with bunch of upfront money before they do anything. Over the time, yes debt consultants will negotiate the debt bills for you and debt repayments unfortunately you make it soon. The debt repayment is going to strengthen your credit score.
If people stop paying their bills and stop repaying their credit cards, the people will have trouble. The people are going to realize this after 7 years of payment, the people can finally realize that their credit is clean again and it is almost impossible to recover from it. Debt settlement means to settle down debts where as Debt Management Services refer to Services related how to repay the debt.
