The following, regarding the differences between
Credit Counseling and Debt Settlement as debt solutions, is taken
from an article appearing on the TASC website. The full
article can be read by visiting:
Tasc Article. For those of you who are not aware, TASC, The
Association of Settlement Companies,is a non-profit organization
devoted to maintaining high standards in the settlement industry,
and highly thought of.

So, lets get beyond all the hype and really take a look
at which program has better outcomes. From the article:
TASC, the non-profit watchdog organization for self-regulating
the debt-settlement industry, gathered the information from various
sources, including the Consumer Federation of America and National
Consumer Law Center, the Executive Office for the U.S. Trustees and
testimony by credit counseling companies. Indeed, all credible sources.

As I have often pointed out, the main difference in the two
approaches is that debt settlement companies work only for the consumer,
while non-profit credit counseling works in the interest of
the banks and credit card companies. As such they are usually only
able to obtain lower interest rates, as pre-established by the banks.

Additionally, settlement companies do not receive any fees
from the credit card companies or banks, they are solely paid by
the consumer. Where as non-profits are supported almost totally
by the banks they serve, by being paid what is called “fair share”
or a percentage of all the money that flows through them.

Debt settlement programs are typically 36 months or less,
while credit counseling programs are 60 months or more.

One of the big drawbacks of credit counseling programs
is that the monthly payments are fixed and many times, even
a bit higher than what the consumer was paying on their own.
Debt Settlement, however, affords the ability of a customized
repayment plan, to fit the consumers budget.

Because of the lower payment option, and shorter duration,
settlement often has a higher probability of program completion
than credit counseling.

So, which program is a utopia? Neither. Getting out of
debt is never easy. However, the key is if you are going to do
a structured program at least understand the real ins and outs
of each, so your decision is not based on what the propagandists
are saying.

If you would like to speak with someone who is
knowledgeable and can present both options to you, and make
full disclosure about each, then please visit:
American Debt Enders.
and while you are at the site feel free to subscribe to our
Free Credit Counseling Newsletter.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465