Credit Card Debt Counseling Compared With Debt Consolidation

When individuals have trouble paying their bills, there are various ways to resolve the situation.

Credit card debt counseling and debt consolidation are two of the methods people choose to solve their financial problems. Let’s take a look at both of these solutions to see how they compare.

Hector Milla Editor of the “Credit Card Debt Counseling” website — http://www.CreditCardDebtCounseling.biz – pointed out;

“…Many companies that provide credit card counseling will actually take a look at your entire financial picture and make recommendations on how you can improve your situation. They will help you to develop a budget and they will provide financial education. You will be dealing with certified counselors who work with individuals in person, online, and over the telephone. They can help you to develop a plan that fits your unique financial situation. This plan will most likely include some aspect of debt repayment and it will also help you to plan for the future…”

With debt consolidation, however, there will likely be no counseling unless you ask for those services too. Not all such companies provide counseling but some of them do. In this case, you will work with professionals who are experienced in the area of consolidating all of your credit card bills into one monthly payment. Often, individuals seek this type of repayment plan before they get into trouble with their creditors but some people also seek this remedy after they have missed a few payments or when the collection calls start.

Of course, it is far better to seek a remedy before you get to the point where you can no longer make timely monthly payments. When you are late with your payments, there are several unpleasant consequences. You will be assessed a hefty late fee, your credit score may be affected, and the credit card company may lower your limit or raise your interest. This can be devastating to someone who has good credit but suddenly finds him or herself in a bind.

Some people need counseling to determine whether or not debt consolidation would be a good method for them. Others need counseling just to get a handle on their finances and to teach them how to budget so that they can have a brighter future without debt hanging over their heads.

“…Whichever method you are considering utilizing to improve your financial situation, sooner is always better than later when it comes to financial matters. The longer the bills go unpaid or are late, the worse your financial picture will become…” added H. Milla.

Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.CreditCardDebtCounseling.biz

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/credit-articles/credit-card-debt-counseling-compared-with-debt-consolidation-1636379.html