Credit counseling is a complex process and not every situation is going to be the same and that can make it hard to know just how long you will be in credit counseling. Some of the best estimates that are offered are basically just a guideline which has been based of the experience of other people. They are going to be able to help you to find out if credit counseling will be the right choice for you or if you should look into a different debt solution like debt consolidation or debt settlement.
Debt Relief Option Time Frames
The different debt relief options will have various timeframes, and it is best that you think about how long the program is to the other options costs like how much you will pay on your debt and how your credit will be affected.
Those who are planning to file for bankruptcy for the first time and follow the rules will be eligible to have their bankruptcy discharged after 9 months, if there isn’t a need for surplus income payments. It is almost impossible for other debt solutions to free you from debt in the same time frame. Personal bankruptcy may be your best option if you are looking to remove debt as quick as possible.
Other solutions like debt consolidation can take a bit longer in order to get you out of debt completely. Reducing your interest rate will save you money when you take out a consolidation loan, but unless there is a large reduction in your principal like you get in debt settlement but that money may save in interest may be less than you are able to save as you replay that debt. It can also take you longer if you don’t get a reduction in the principal. Debt settlement also will not damage your credit like bankruptcy, and it is less disruptive to your life.
Credit counseling focuses on teaching you how you can manage your own debt, so you can’t speed up the process like other solutions. You will often get an interest rate reduction and the monthly payments are easier to handle, but the principal owed will stay the same.
There isn’t a set of rules on how long you will need to be in credit counseling, if you decide to go with that. It will depend on how well you learn to live on a budget, the difference between your interest rate, the amount that is owed, and your ability to pay more than minimum each month. If you are in a good counseling plan, then you could be out of debt in 12 months and you work hard to cut expenses. It could also take many years if your interest rate savings were not as much as you had hoped, and you can’t pay more towards the principal.
If you want to save time and money, then consider your options with the help of a professional. Just fill out the debt relief form on the bottom and find out more.
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