Compare Credit Card Debt Negotiation Vs Credit Counseling

Dealing with large amounts of debt is an uphill task, especially when the debt is maxed out from credit cards. However, there are plenty of methods to eliminate our debt. Most people are in a misconception that they need to pay off the bills or file a chapter 7 or chapter 13 bankruptcies. However, there are other good ways like credit card debt negotiation or credit counseling which offer a better way to deal with your debts.

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Unsecured credit card debt negotiation is a negotiation process wherein the creditor and debtor come up with an agreement to pay certain amount less than the actual amount owed. Unlike bankruptcy, you can decide how much you can pay each month to clear the debt. You can also hire a credit card debt negotiation company to deal with your creditors on your behalf. Debt negotiation professional can deal with your creditors effectively and reduce the actual amount to be paid. Your debt management is also done to perfection at an affordable price.

Credit counseling works on the same lines and the only difference being the involvement of a third party counselor. However, there is a major disadvantage with credit counseling. The third party counselor, hired by the creditor to strike a deal between the debtor and the creditor, always tries to favor the creditor. The main motto would be to reduce the interest rate and does not encourage the reduction in the principal amount to be paid. Creditors will always have an edge over the debtors.

Debt negotiation is suitable for people who have large amounts of debts, more than ten thousand dollars. In addition, the amount falls into unsecured debt and thereby the interest rate will also be high. If you opt for debt negotiation, you can directly negotiate with the creditor or hire a professional debt negotiator to do this work for you. There is a possibility of reducing the actual amount to be paid by 50% and you can be debt free within 4-5 years. If you research on the internet, you find that people are able to reduce up to 60% of their actual debt with debt negotiation.

Credit counseling is mostly suitable for people who have moderate debt amounts or multiple loans or mortgagees. The disadvantage with credit counseling is the way with which the counselor deals with it. As the counselor is hired by the creditor, he would definitely try to favor the creditor. The main aim of the creditor would be to reduce the interest rate and not the actual amount due. At the end, principal amount and term of pay will remain the same. Debt negotiation would not only help you reduce the principal amount and term of pay but also manages your financial situation effectively.

There are many personal unsecured credit card debt relief options available for you to manage your debts. It is recommended to consult a debt relief specialist who can decide which debt relief option best suits your requirement. Online research is one of the best methods to compare the pros and cons of all the debt relief options and come up with the right program which can deal with your financial crisis effectively.

Best Debt Negotiation Programs

There are hundreds of debt negotiation companies available to choose from and they all claim they can get you out of debt fast. There are a few that have better reputations than the rest. Here are our top recommended programs to help you become debt free:

• Curadebt Debt Relief - get a free debt quote and free debt reduction plan
• Do It Yourself Debt Negotiation - eliminate your credit card debts in 6 to 18 months