Compare Debt Negotiation vs. Credit Counseling

If you are struggling with the decision to join a Debt Settlement/Debt Negotiation program or Credit Counseling program, the question to ask yourself is,

Q. What will I qualify for?

A. With credit counseling, you can’t be any more than 60 days delinquent on your bills and be able to afford about 2.8% of your debt monthly. With a debt settlement or debt negotiation program you have to afford the monthly program they will devise for your specific needs.

Q. Will my creditors continue to harass me?

A. With credit counseling, your creditors will not harass you since they will be receiving a monthly payment from the credit counseling company. With a debt settlement or debt negotiation program your creditors will more than likely continue to call unless, you have the debt company you’re working with, put a stop to it.

Q. Will this have an adverse affect on my credit?

A. With credit counseling special marks will be placed next to the accounts that have been entered into the program that will be viewed negatively by lenders. With debt settlement or debt negotiation you can expect the creditors to report derogative marks against you while you are in the program, or until the debt is settled.

Q. How long will it take to get out of debt?

A. Credit counseling is normally from 3 to 7 years. With debt settlement or debt negotiation the program is normally between 3 to 4 years.

Q. Can I be sued?

A. Generally creditors only sue if they are not receiving payment. If they are receiving payment monthly from a credit counseling firm the chances are next to zero. With debt settlement or debt negotiation program, your creditors will not be receiving any money until the account is settled. This leaves an open door for a suit to be filed against you.

Financial Choice Network understands this may be a lot to consider, we are committed to connecting you to the right provider to fit your needs. For a free consultation call, or fill out a form and an experienced financial advisor will assess your situation and put you in contact with the right provider.