When you consider different options for debt relief, there are many questions that you need to ask yourself.
- Will this program help to keep me from getting into debt again?
- How long is it going to take to get out of debt with this program?
- How will this program affect my credit?
- How much is this option going to cost?
Can Credit Counseling Help?
If you have less than $10,000 in debt, then the negotiated interest rates as well as other types of benefits that credit counseling can help with. If you happen to owe more than that, then you will probably have better benefits from a debt solution that can reduce the principal balance like debt settlement.
Credit counseling has been created for those who can make minimum payments even if the finances are tight. It can also work for those who can make their payments if the creditors could lower how much needs to be paid each month. Although, if there wasn’t a way that you could make the payments even if they were lowered, then you would need to look into other options like bankruptcy.
Credit Counseling Advantages
Credit Counseling is able to:
Reduce your stress by helping you to get ahead on your payments by negotiating better terms with creditors and then teaching you how you can avoid getting into debt again.
Negotiate better interest rates on existing debts. If you get lower interest rates, then the minimum payments will be lowered. Lower payments are easier to handle, which reduces the risk that you get too far behind. It can also help you to speed up your payments and more money will go towards the principal.
Teach you how to live on a budget. This has a lot of positive aspects for your finances because if you are able to live on a lot less than you make, then you won’t be forced into situations that can damage your credit like bankruptcy or consumer proposals.
Are There Other Options for Me?
If you want to learn more about options that you may have and to see if credit counseling is right for you, then just fill out our debt relief form.
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