What is the difference between Credit Counseling and Debt Settlement?
Credit Counseling is different than a debt settlement program because Credit Counseling is an honorable way to pay down your debt that does not destroy your credit. You will pay the full balance owed but significantly less in interest. It is a proven program and creditor calls will stop. It is a great way to avoid bankruptcy. You make monthly payments to your creditors, and on time monthly payments improve your credit score. Debt Settlement is an aggressive approach to debt elimination that will significantly damage your credit rating, and there is no guarantee that the creditors will not seek legal action or that they will settle. Essentially, with a Debt Settlement Program you stop paying your creditors and go into default to make the creditors think that you are in a financial hardship and unable to pay. The account will then be charged off and sold to a collection agency. A charge off can be just as damaging to your credit as a bankruptcy. You then start saving up enough money to o
