What is the difference between Debt Settlement and Credit Counseling?
In a debt settlement program, negotiators work on your behalf to reduce your balance by up to 50%. In a credit counseling program, counselors work to reduce interest rates. The average credit card debt settlement program lasts between 1 and 3 years, whereas credit counseling services last for between 4 and 6 years. In general debt settlement tends to be a more aggressive approach to debt elimination.
Related Questions
- What is Debt Settlement and how does it differ from Debt Management (also referred as Credit Counseling or a Debt Consolidation Program)?
- What are the differences between Debt Settlement / Unsecured Debt Relief Program compared against Credit Counseling?
- Whats the difference between Credit Counseling and Debt Settlement?
