Through credit counseling, consumers are given useful advice about how to best get out of debt.
New York, NY (PRWEB) June 18, 2013
Credit Card Consolidation Loan is more serious than ever to contribute to the debt relief industry by publishing articles that are meant to educate consumers about different debt solutions.
In one of the articles, the site discussed two alternatives in debt consolidation in the article entitled “Debt Consolidation Loan Alternative.” Since the site is known to offer their services through debt consolidation loan, the article focuses on this type of debt solution. But in order to provide a more comprehensive debt education, the article describes credit counseling/debt management and debt settlement as well.
The article begins by describing debt consolidation as a general way for people to reduce, manage and pay down what they owe. Debt consolidation is often times needed by people to get out of debt and it can be a difficult without the proper knowledge of what the different options can do.
Credit Card Consolidation Loan believes that debt consolidation loan is the most widely used and well known type of debt consolidation. Lenders have always offered a low interest loan to refinance existing ones - at least, if the borrower qualifies for it. For instance, the company requires the following from their clients:
1. High credit score
2. Personal asset with a value equivalent to the loan amount
3. Steady income
If the consumer is unable to produce these requirements, they have another alternative: credit counseling.
The article describes credit counseling as the “gentler debt consolidation alternative.” There are several non-profit agencies/organizations offering this service and they are supported by credit card companies. Through credit counseling, consumers are given useful advice about how to best get out of debt.
At the beginning of the program, a credit counselor will work with the consumer to create a debt management plan. The article explains that this plan will show a reduced monthly payment scheme over a lengthy term. Some consumers may not like the longer payment period but in some cases, this is the only option that they have. The article also warns that the long payment could end up costing the consumer more in terms of interest amount.
The last alternative that was discussed involved debt settlement. The article defines it as the debt consolidation alternative that allows debt reduction and complete payment in a few years. However, this will put a significant negative effect on one’s credit score.
The article encourages readers to ensure that they fully understand the pros and cons of each option before making their choice.
To read the whole article, visit Credit Card Consolidation Loan.