Consumer Credit Counseling vs Debt Relief
Many people are in debt. It is certainly an easy situation to fall into because credit is often quite easy to obtain. You don’t even have to go looking for it — most people receive credit card solicitations in the mail. As a result, people are finding themselves buried in debt that they are having trouble paying off. If you have too many credit cards and/or your monthly payments are too high, you might require some help. Rather than filing for bankruptcy, a good first step is to work with either a counseling agency or debt relief company. In this article, we will explore Consumer Credit Counseling vs. debt relief companies.
Consumer Credit Counseling is a nonprofit organization that has offices all around the nation. When you make an appointment with your local office, you will need to take proof of all your debts and the contact information of your creditors with you. The counselor will also ask you to hand over your credit cards which they will cut in half. In my local CCC office, they have made wall art from the cut up credit cards of all their customers! The counselor will sit down with you and go over each debt. Be prepared to spend a few hours at your appointment. After that, they will offer you a monthly payment deal. You will pay CCC a designated amount each month, which they will disperse among your creditors.
Debt relief companies work in much the same way. The difference is that they are not nonprofit organizations and do seek to make a profit with their services. Also, they do not require you to cut up your credit cards. They also do not usually offer the personalized level of service and counseling that CCC does. This is not to say that a debt relief company cannot help you, they often can. If you do not have a Consumer Credit Counseling office in your area, you may have to turn to a debt relief agency.
When it comes to Consumer Credit Counseling vs debt relief agencies, CCC is the clear winner simply because of the level of service they offer and their nonprofit status. However, debt relief agencies often offer many benefits also. The point is, it is important to obtain some kind of help with your debts before you consider filing for bankruptcy. Bankruptcy can be devastating to your credit rating but luckily can be avoided.
