Credit Counseling Vs Debt Negotiation

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Credit counseling and debt negotiation deals are two very lucrative options to get out of debt. However both vary in their style of implementation and methodology. When a person needs to avoid bankruptcy, he goes for either of the two options depending upon his requirement and situation. Such relief options provide respite from the sky high debt installments by getting reduction in the amount or the interest rates.

Debt negotiations involves negotiating a debt deal with your creditors asking for reduction in amount because of your inability to pay back the whole amount. You can negotiate your yourself or hire a professional settlement company to deal with your creditors. Credit counseling is similar to debt negotiation and settlement differing in the fact that a third party counselor is hired to oversee the deal between the lenders and debtors. however the major drawback is that the third party is officially hired by the creditors and they try to strike a deal favoring the creditors more to increase their own earning.

Debt negotiations stand a better chance of getting you debt free more quickly. on an average negotiations can reduce your debt amount by almost 50% and get you debt free in 3-5 years. Credit counseling on the other hand focuses more on lowering the interest rate on the outstanding debt to help decrease the monthly installments and provide relief. This can help you become debt free in anywhere between 5-7 years. Thus credit counseling neither actually affects the principal amount nor time to pay it back. Debt negotiations stand a much better chance of a good deal and hefty reduction. Moreover a professional settlement company will not only help you with negotiations but also handle your weak financial situation.

Their are several debt relief options available in this market so it would be wise to speak with a debt relief specialist to determine which option makes the most financial sense for you. Whether it is credit counseling, debt settlement, debt consolidation, or bankruptcy, a debt relief specialist will be able to steer you in the right direction.

Check out the following link for a free debt consultation from a specialist in your area:

Free Debt Help [http://www.freedebtsettlementadvice.com]

Article Source: http://EzineArticles.com/?expert=Danielle_Sanders

Source: http://business-negotiation.blogspot.com/2012/07/credit-counseling-vs-debt-negotiation_31.html

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