If you’re having difficulty paying your bills monthly and need moderate credit card debt relief, credit counseling could possibly be a successful option.
Credit counseling doesn’t reduce the amount of debt you owe. Instead, a credit counselor can put together a reasonable payment plan that gives lower rates of interest which were pre-negotiated along with your creditors. Through credit counseling, you may also enroll, for a fee, in a debt management plan (DMP).
A DMP is a systematic way to lower your outstanding debt through monthly obligations to your credit counseling agency, that will then distribute these funds to creditors. This really is not the same as debt resolution because the money you owe isn’t settled for a lesser amount and monthly plan payments could possibly be more than your current minimum payments.
This plan may help protect you from creditor collection actions and may prevent you from becoming delinquent. It may be an excellent option for you personally if you can afford your monthly premiums, have lower debt amounts, and/or are current on at least one credit card.
But if you’re currently struggling to pay your minimum payments and aren’t more comfortable with the actual fact that credit counseling could require you to pay a lot more every month, then it isn’t really the proper option.