Credit Counseling: The Safe Choice?

By: Michael Millington

Debt comes in all shapes and sizes. Sometimes people let their debt accumulate until it gets completely out of hand. Sometimes people jump at the slightest overage and want to take care of it immediately. Those who are quick to jump are more affected by the effects of late payments over a period of time. The fees and interest rates that creditors impose can instantly undo any payment people make to help eliminate their debt. Only those who make a full debt payment would avoid such penalties and very few are able to do so. For those who fall under this category it’s possible that credit counseling strikes them as an easy solution to their seemingly endless cycle of payments. Credit counseling is one method to help reduce your overall debt, but is it the right method for you?

 

What Is Credit Counseling?

Credit counseling is a form of debt relief that helps those with moderate debt reach their goal of eliminating their debt. Many who choose credit counseling have the distinct advantage of being able to make their monthly payments but cannot seem to lower their debt due to fees or interest rates. The credit counseling company will pay your creditors on a regular basis to avoid further lateness and potentially keep your credit score intact, though this is not a guarantee. The counselor can also provide assistance with budgeting to help foster positive financial habits going forward. They can also try to negotiate lower interest rates to ease the blow of debt repayment.

 

Why Does It Not Compare To Debt Settlement?

While credit counseling might seem like a more suitable option to those who have a moderate amount of debt, it does little to help with the actual issues behind a debt reduction strategy. Those who go to credit counseling seeking to reduce their overall debt, find that they are still required to pay 100% of the debt they owe. Credit counseling will commit to making payments to creditors on your behalf, but replace the creditors with their own strict payment schedule. Many times a credit counseling program will stop at the first missed payment.

 

Where Does Guardian Debt Relief Come In?

Guardian Debt Relief offers you an alternative to the strict ways of credit counseling. Through debt settlement you can actually reduce your overall debt instead of paying it all back. More of your money goes to your main debt and not your fees and interest. By depositing your payments in an escrow account you then allow Guardian Debt Relief to deal with your creditors directly. With their debt settlement plan, they can allow you to pay off less of your overall debt in less time than with credit counseling. Instead of a strict payment plan, Guardian Debt Relief allows you to pay gradual amounts to the escrow account until you reach a predetermined limit. Guardian takes the stress out of debt recovery with a simplified approach and quicker results than credit counseling. If you have found yourself dealing with debt problems and you don’t want to spend more time paying more than you have to, take the first step and contact the professionals at Guardian Debt Relief today!