What is Credit Counseling?
Is This Type of Debt Help Right for You?
Credit Counseling consolidates all of your unsecured debt into one monthly payment. Credit Counseling can also be referenced as debt management. The consolidated monthly payment is typically lower than what you would be paying your creditors individually for a normal monthly payment. When you are struggling to pay a variety of bills each month, making just one monthly payment is much easier than making multiple payments to multiple creditors.
Credit counseling companies offer pre-negotiated benefits with select creditors. Specialized repayment benefits often include the waiving of interest and late fees. Without these fees tacked on, the monthly payment can be much lower. Paying down your debt directly without added fees and with a consolidated monthly payment can reduce the time it takes to pay off your debt to as little as 3-5 years.
Debt management is best suited to people who struggle with credit card debt. If you can only afford to make the minimum monthly payments on your credit cards, if you are stretched a bit thin because you are unable to juggle multiple payments at varying times in a month, than credit debt counseling may be the debt help you need. Be aware that debt management plans require you to stop using all of your available credit cards and to enroll them in the plan. The potential extension of creditor benefits is contingent upon the consumer relinquishing the use of their credit cards. You must be serious about not only paying off your debts, but learning how to live without debt if you want to find success with credit counseling.
