Are you struggling with debt and don’t know what to do? A CBS News MoneyWatch article explains two common choices: credit counseling and debt relief. The article features expert advice from Natalia Brown, Chief Compliance and Consumer Affairs Officer for National Debt Relief.
The guide explains that both credit counseling and debt relief can help you manage debt. But they help in different ways. Non-profit groups usually offer credit counseling. This focuses on teaching you about money and preventing future debt. Budgeting and debt management plans are the main tools used by credit counselors.
Debt relief services often take a more direct route. Choices like debt settlement and debt consolidation help fix your current debt problem.
Natalia Brown explains that with debt relief services: “The company acts as your representative, communicating with your creditors and working on your behalf to reach settlements that significantly lower your debt obligations.” The American Association of Debt Resolution says people in debt settlement programs see their debts reduced by 32% on average.
The article points out that credit counseling and debt relief don’t have to be an either-or choice. They can work together. Credit counseling can teach you the basics while debt relief can offer solutions for larger debts. But each option has its own factors to consider, like costs, credit impact, and possible taxes.
It’s important to make the right choice for your needs. Credit counseling may be better if you want to learn about money and have smaller debts. Debt relief may be better for larger debts that you can’t manage alone.
Working with the right people makes all the difference. “For anyone considering debt settlement, it is important to seek guidance from a reputable company to ensure you are making informed decisions and protecting your financial well-being,” says Brown.
Want to learn more about how credit counseling or debt relief can help you? The full article on CBS MoneyWatch gives detailed comparisons. It also has expert advice and important things to think about for both options. It’s a must-read if you want to make a smart decision about your debt.
