Credit counseling are usually non-profit organizations that advise you on managing your money and debts. They usually offer free educational materials and workshops. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.
Note: Credit counselors may help you organize a “debt management plan” for all your debts. Under a debt management plan you make a single payment to the credit counseling organization each month or pay period. The credit counseling organization then makes monthly payments to your creditors.
Under debt management plans, credit counselors usually do not negotiate any reduction in the amounts you owe – instead, they can lower your overall monthly payment. They may do so by getting the creditor to increase the time period over which you can repay a loan. They may also get creditors to lower the interest rates. Although most credit counseling organizations are non-profits, they may charge fees for their services that they take out of the payments you make to them.
vs DEBT SETTLEMENT OPTION
With the option of debt settlement, your debt settlement company negotiates with the lender to agree upon a settlement balance often less than what is owed, to repay the debt. This form of relief is less harmful to your credit score than bankruptcy and can offer some immediate relief from financial pressure drastically lowering your monthly payments.
Which debt relief option is best for you? For many, the answer is debt settlement. But is that the best option for relieving credit card debt? It’s important to review all your options and make the best decision based on your financial reality. Getting a Free Debt Analysis of your financial situation is important in understand which option might be best for you.
National Financial Relief is one of the most dependable debt settlement companies in the nation. We are made up of smart, compassionate and energetic people who genuinely want to help you get out of debt.
Clients who are able to stay with the program and get all their debt settled realize approximate savings of 50% before fees, or 30% including our fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.
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See how much you can save every month — with your personalized plan from National Financial Relief.
See how much you can save every month — with your personalized plan from National Financial Relief.