Debt Reduction Options - Free Credit Counseling Services Or Debt Settlement?
One of the biggest criticisms against debt settlement is that there are many fraudulent service providers in the market and that the average individual ends up in a position far worse as compared to his or her original problem.
There is no doubt that dealing with a fraudulent service provider is going to put you in a very difficult position indeed.
Well, up till here, each and every criticism against fraudulent debt settlement makes perfect sense.
However, this is where the criticism goes off track.
The counter or the alternative offered for those suffering from debt problems is credit counseling services.
That is unbelievable.
A credit counseling service will analyze your debts and will give you a clear indication offer how much money you owe, how much you earn, what is a shortfall and will give you tips and hints to overcome the same.
Well, when you know that you earn thirty thousand dollars in a year and your unsecured debt is around forty thousand dollars along with a home mortgage of another fifty thousand dollars and when you know that you have insurance commitments and other expenses worth ten thousand dollars in a year, you are looking at a shortfall of seventy thousand dollars.
In such a scenario, what possible solution will help you overcome your debt problems and avoid bankruptcy? You can not just shut down your life and focus only on debt reduction, can you? The solution will have to work simultaneously.
In such a scenario, you realize that a debt settlement is the only solution that is going to work.
If dealing with a fraudulent settlement company will put you in a worse position, the smartest option is to make sure you find genuine service providers only.
There is no point in going in for a free credit counseling service because the net result of the service is going to be of no use whatsoever.
You will just be told why you are facing debt problems.
What you want is a solution that will actually help you get out of your debt problems.
What is a huge difference between the two services? The only person for whom a credit counseling session will be very useful is one who is just beginning to face debt problems or one who has just lost his or her job and wants to find out where he or she stands.
If you are already facing pressure from debt collection agents, there is no point in waiting for relief to arrive automatically.
Instead, it makes a sense to utilize debt settlement as early as possible.
There is no doubt that dealing with a fraudulent service provider is going to put you in a very difficult position indeed.
Well, up till here, each and every criticism against fraudulent debt settlement makes perfect sense.
However, this is where the criticism goes off track.
The counter or the alternative offered for those suffering from debt problems is credit counseling services.
That is unbelievable.
A credit counseling service will analyze your debts and will give you a clear indication offer how much money you owe, how much you earn, what is a shortfall and will give you tips and hints to overcome the same.
Well, when you know that you earn thirty thousand dollars in a year and your unsecured debt is around forty thousand dollars along with a home mortgage of another fifty thousand dollars and when you know that you have insurance commitments and other expenses worth ten thousand dollars in a year, you are looking at a shortfall of seventy thousand dollars.
In such a scenario, what possible solution will help you overcome your debt problems and avoid bankruptcy? You can not just shut down your life and focus only on debt reduction, can you? The solution will have to work simultaneously.
In such a scenario, you realize that a debt settlement is the only solution that is going to work.
If dealing with a fraudulent settlement company will put you in a worse position, the smartest option is to make sure you find genuine service providers only.
There is no point in going in for a free credit counseling service because the net result of the service is going to be of no use whatsoever.
You will just be told why you are facing debt problems.
What you want is a solution that will actually help you get out of your debt problems.
What is a huge difference between the two services? The only person for whom a credit counseling session will be very useful is one who is just beginning to face debt problems or one who has just lost his or her job and wants to find out where he or she stands.
If you are already facing pressure from debt collection agents, there is no point in waiting for relief to arrive automatically.
Instead, it makes a sense to utilize debt settlement as early as possible.
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