Credit counseling and debt settlement programs are the best options
for getting rid of debts. In many circumstances, it is difficult to
decide that what method is more suitable. Each procedure has its own
benefits and drawbacks. By doing a comparison of both these options, it
will be easy to select one of them. Moreover, if someone feels that he
cannot judge what is best for him then he should talk to a legal lawyer
or attorney. He will guide him in the right direction.
Credit
counseling is not an elimination process. It is a training and education
program. In this procedure, spending habits of people are studied and
after getting all the information about their monetary issues, a credit
management plan is suggested. There are no restrictions on getting this
training. Anyone who wants some counseling about management of resources
can attend lectures and workshops held by institutes. There are many
government and non-government agencies that provide this training
facility. Some military organizations are also providing free services
in this respect. This training helps people throughout their lives. A
person who pays his debts without any settlement and resulting
elimination not only save his FICO scores and credit history but also
saves himself from future disasters. Once he is able to pay his debt
successfully, he will never become the victim of financial crises in his
life.
The Debt settlement program can eliminate debts up to 50%
or more. The Only thing that is essential for this reduction is proper
negotiation. For this purpose, a person should hire professional
settlement agents or attorneys. These people charge fees for their
services but these fees are paid after getting settlement. Getting
assistance of these people will reduce debtor's responsibilities and
legwork. After involving a lawyer in this process, a person should
consult him before doing any negotiation with collectors or creditors. A
person who wants to save himself from bankruptcy and knows that he will
not be able to pay debts in full at any cost should use this facility.
It is totally legal and authentic.
Credit counseling and Debt
settlement programs are far better than filing bankruptcy. Although
settlement affects FICO scores but bankruptcy ruins debtor's whole life.
