Credit Counseling



Credit Counseling/Debt Management


Credit counseling, or debt management, is a strategic effort to eliminate unsecure debt such as credit cards and medical bills. A counselor will help set up an affordable monthly payment plan with a lower interest rate than you may have currently. You would then make payments to the debt management company, opposed to your creditors. These programs usually take five years to complete and have higher monthly payments than just the minimum amount. If you are having trouble paying your bills each month and need small to moderate debt relief, this option may be effective for you.



PROS

  • One monthly payment

  • Lower rates, less fees

  • Collection calls stopped

CONS

  • Lenders may view you as credit risk

  • No reduction in overall debt

  • Credit card accounts will be closed



  • What is the best debt relief option for you?