Archive for the ‘Finance’ Category
Credit counseling and debt consolidation are two effective means to push you out of debt crisis. The former one refers to a way of combining your bills though does not grant a loan. The debt consolidation companies – on the contrary – make an aggregate of all the existing debts and allow the customers to make a single monthly payment instead of multiple ones.
Often people ask me which one they should go for. There is no unique answer to this query. Situation differs and so differs the solution. However, personally I believe that Credit counseling is a much better choice. In case of credit card debt, the creditors report about your status to the credit bureau. However, with debt consolidation, mere reporting is not the end of the story but a beginning of woeful tale.
Suppose you have taken a debt consolidation loan but can not pay it off within time. What will follow is no less nightmarish than the amassing of debts day by day. Your lenders may set the debt collection agency on you. The worst case is that they may foreclose your property and collect the proceedings out of its sale. So, think about other ways if those options fit your case.
Consumer credit counseling is akin to debt consolidation but there is a difference. It does not require you to apply for a loan. Go to a credit counseling agency or an individual expert regarding your problems and solutions and they will suggest you how to handle obligations without crossing the threshold of your budget limitations.