Consolidating credit card debt without hurting your credit advice on dating a married man
You mentioned having already connected with a credit counselor. I wish everyone seeking out debt help and advice would take the time to talk with a credit counseling agency as part of their search for a debt solution.Speaking to a counselor about your debt and how the agency may be able to help is free.I will make some other comparisons between credit counseling and debt settlement.In the process I will describe how your lower monthly payments work between the two. A DMP works to reduce your debt because the credit counselor has preset lower payment concessions worked out with most credit card lenders, department stores, gas cards etc.Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
You bring up a great point about lower monthly payments offered by both debt solutions.
One of the larger companies offering debt settlement calculates their service fee at 22% of your balances at the time you start the program. Dividing the ,400.00 by 36 means your monthly payment on the debt settlement plan will be 4.44.
There are too many variables to list from one persons situation to the next, but some generalities can be easily applied to each of us.
They also have success in getting medical bills and other unsecured debts enrolled in the DMP.
Credit counseling monthly payment arrangements with your creditors (that agree to the debt management plan), are helpful if your monthly budget shows you can afford to pay 1.8 to 2.2 percent of your combined debts that are on the plan.
Most people reading how I compared the above 2 debt relief options would probably choose credit counseling over debt settlement…. The fact is, not everyone can qualify for, or afford a debt management plan.