Credit Counseling Vs Debt Negotiation - Tips to Pick the Right Debt Relief Strategy
If you are aware of the advantages and disadvantages of different debt relief options, you will find it easier to choose the right one quickly.
For example, do you understand the differences and benefits of debt negotiation over credit counseling? If yes, you can easily determine which financial option you need.
A credit counseling session involves an analysis of your finances along with a detailed plan for repayment of your debts in a faced manner.
Since you have submitted to the analysis and are prepared to repay the debt in full, the credit card company might, upon negotiations with the expert, offer relaxed repayment tenure.
That is the maximum that the credit card company will be prepared to offer.
In case of a debt negotiation, the analysis is followed by determination whether you are in a position to repay your debts or not.
If not, the settlement company shall negotiate with the borrowers and arrive at the mutually beneficial solution.
This usually involves a 50% to 70% discount combined with an extension of repayment tenure ranging from 12-18 months.
This time should be sufficient for you to repay the discounted amount owed.
The right debt relief strategy depends on your finances.
If you have -Lost your job.
-Suffered a wage cut he.
-Ended up as the only earning member of your family.
-Suffered from a huge financial crisis.
-Suffered from a big medical emergency.
Going in for a debt settlement is a smart move because chances of earning sufficient money to repay your debts, to avoid pressure from debt collection agencies and to avoid bankruptcy will be a very big ask.
Not all persons will be in a position to handle all this.
Even if it is possible in theory, practical issues will crop up.
On the other hand, if you have simply messed up your finances with the help of a few bad and impulsive decisions and if you are in a position to generate sufficient funds very quickly, you can easily go in for a credit counseling session instead.
Since these organizations work very closely with credit card companies and are often remunerated by the same, you will find it easier to get your message across if it is very important.
It negotiation deal is a drastic solution and should be used accordingly.
A credit counseling session is a much more relaxed option.
For example, do you understand the differences and benefits of debt negotiation over credit counseling? If yes, you can easily determine which financial option you need.
A credit counseling session involves an analysis of your finances along with a detailed plan for repayment of your debts in a faced manner.
Since you have submitted to the analysis and are prepared to repay the debt in full, the credit card company might, upon negotiations with the expert, offer relaxed repayment tenure.
That is the maximum that the credit card company will be prepared to offer.
In case of a debt negotiation, the analysis is followed by determination whether you are in a position to repay your debts or not.
If not, the settlement company shall negotiate with the borrowers and arrive at the mutually beneficial solution.
This usually involves a 50% to 70% discount combined with an extension of repayment tenure ranging from 12-18 months.
This time should be sufficient for you to repay the discounted amount owed.
The right debt relief strategy depends on your finances.
If you have -Lost your job.
-Suffered a wage cut he.
-Ended up as the only earning member of your family.
-Suffered from a huge financial crisis.
-Suffered from a big medical emergency.
Going in for a debt settlement is a smart move because chances of earning sufficient money to repay your debts, to avoid pressure from debt collection agencies and to avoid bankruptcy will be a very big ask.
Not all persons will be in a position to handle all this.
Even if it is possible in theory, practical issues will crop up.
On the other hand, if you have simply messed up your finances with the help of a few bad and impulsive decisions and if you are in a position to generate sufficient funds very quickly, you can easily go in for a credit counseling session instead.
Since these organizations work very closely with credit card companies and are often remunerated by the same, you will find it easier to get your message across if it is very important.
It negotiation deal is a drastic solution and should be used accordingly.
A credit counseling session is a much more relaxed option.
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