Debt Consolidation And Consumer Credit Counseling

Consumer Credit Counseling has also become a recognizable option for debt consolidation.  This method, too, combines the borrower’s debts toward something manageable while attempting to eliminate fees assessed from past delinquencies and over drafts.  The Consumer Credit Counseling approach seems especially popular after the advertising blitz over the last few years as an ethical alternative to bankruptcy, but, though this is not mentioned in the industry’s never ending succession of commercials, CCC assistance actually has similar repercussions to credit reports as the Chapter 7 protection.  Furthermore, it turns out that many of the Credit Consumer Counseling firms are pawns of the credit card companies – which, considering they’re serving two masters without ever letting the borrower know, rather defeats any claims of moral superiority as regards debt consolidation. 

Debt Consolidation And Debt Settlement

The debt settlement industry is, perhaps, the least known debt consolidation solution.  Debt settlement’s newer, certainly, and, since they solely work for the interests of debtor clients, the certified firms do not have the (credit card company funded) money available to blanket the airwaves with their ads.  Debt settlement firms seek to lower unsecured debt balances through a series of negotiations with the original lenders that implies the debtors may consider bankruptcy as an option should their demands for reasonable treatment be ignored.  With most every creditor, this not only waives the past fees and interest but actually cuts money off of their total debt!  

Debt Consolidation: Choose Which Service Is Right For You
For many borrowers, debt settlement won’t be a debt consolidation option.  There are requirements and qualifications, unlike those borrowers going through Consumer Credit Counseling, and, though the decrease in FICO credit scores may be comparatively minimal, some debtors may not want to see any drop at all.  It’s important for borrowers to study and research every different alternative in order to know which ones best fits their particular economic needs and life goals.

Debt Consolidation: Don’t Be Pushed Into Anything
Unfortunately, as with any financial business, some companies consider pushy sales just part of doing business, and debt consolidation is no exception.  Even the most community oriented banking institution, one that has served your family for generations, could have a predatory loan officer that will stop at nothing to convince you their specific debt consolidation alternative will solve all debt problems.  Not only should borrowers never settle for the first option they are presented with, this sort of approach should be a warning sign since hard-sell techniques are often employed by debt consolidation specialists who will promise interest rates and debt reduction that they cannot deliver.  If you feel that questions are not being fully answered or one approach is being pushed without information, you may want to consider a different professional with which to entrust your financial future.

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