The Ideal Client for Credit Counseling Debt Relief Cambridge MA
The Ideal Client for Credit Counseling Debt Relief
Who is Best Served by Credit Counseling? - Finding Your Debt Relief Solutions
∗Epic Debt Relief is not a credit counseling agency and does not affiliate with any such parties. The company serves consumers with debt settlement plans, and has provided the information below strictly for educational purposes for consumers in need of debt relief solutions.∗
Debt relief comes in many forms, but all consumers have one thing in common: difficulty paying off unsecured debt or a situation where they have become overwhelmed by creditors and bills that cannot be paid. There is very little else in common between debt settlement and credit counseling other than the clients. Here are some tips about who is best suited for credit counseling:
-If you have the ability to pay more than the minimum payment on your credit card bills, you might be a good candidate for credit counseling. Debt settlement is best for those who need low payments and affordable options, credit counseling can be less damaging for those who have more money to spare. If there is a financial hardship, debt settlement might be the only option. However, those who just need help managing their debts might be best suited to use credit counseling to get the most from their debt relief solutions.
-Anyone who doesn't own a home or cannot get a second mortgage or equity loan is also a good candidate for credit counseling. Debt management is going to negatively impact credit history and scores, but credit counseling looks better than debt settlement. If you have the means of taking out a home equity loan to pay off debts, this is usually the better solution because of the lower interest rates and better payment plans. However, some people do not have this option and must rely on other debt relief solutions and bankruptcy alternatives. It just makes more sense to use what you have, and those who have access to better solutions such as home equity loans should never pass up the chance to use them when they can.
-If you lack a credit score that will give you reasonable interest rates you might want to consider credit counseling. If your home equity loan is going to be high interest and you can get a credit counseling plan that makes more financial sense, you should.
-If you aren't sure that you can afford the monthly payment, you should always choose credit counseling over home equity. Failing a credit counseling program is far less serious than missing a payment on your home. The slightest doubt means that you should seek other options.
-If you have a problem with overspending or budgeting money, or have taken out previous home equity loans. Even if you've already done one equity loan to pay off debts, the credit card offers can keep rolling in because your credit is still good. You will need to re-learn how to manage finances and budget money, which often makes credit counseling or debt settlement the better option because you don't have access to credit any longer. Debt relief negatively impacts credit, which makes it nearly impossible to get credit cards. This time can help people learn how to live on cash and without credit while they are repairing their financial situation, whereas a home equity loan just fixes the obvious issues and not the underlying problem.
These are all great tips to help determine which method of debt relief is best for your situation. You need to find what works for you, because no one else can tell you what that might be.
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