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CREDIT COUNSELING/DEBT MANAGEMENT: Interested in Lowering Your Interest Rate?



What is Credit Counseling? 


Consumer Credit Counseling Services (CCCS), also referred to as Debt Management, is a program which helps consumers eliminate their debt load in a shorter amount of time than would be possible making only the required minimum monthly payment.  This is accomplished when a credit counseling service contacts and negotiate a set monthly payment with each creditor, thus reducing the interest rate the consumer is responsible for paying each month and making the road to a debt-free life a reality in the foreseeable future. ​


Credit Counseling/Debt Management is a viable option for people carrying a moderate debt load ($10,000-$100,000) but who are not struggling to make their monthly payments.  The main goal accomplished through Credit Counseling/Debt Management is to lower the interest rate the consumer pays every month.  For people carrying a high debt load (upwards of $100,000,) Credit Counseling/Debt Management might not be sufficient to reduce your debt in a reasonable amount of time.  This is because, with Credit Counseling/Debt Management, the credit counseling company negotiates a lower interest rate with each of a consumer's creditors.  Unlike with debt resolution, Credit Counseling/Debt Management does not settle the debt for less than what is owed.  This program might not necessarily be beneficial to consumers with a high debt load in that they will likely remain in this program for a longer period of time than they might expect from other programs we here at High Level Debt Solutions have access to.  The only savings that comes with a program such as this is a lower interest rate (the entire original balance owed is still the responsibility of the consumer to pay back.)   



Credit card companies make most of their profit from the high interest rates they assign to consumers. Most people who request a reduction in their interest rate from their creditors are denied (even if every minimum monthly payment to date has been made on time.) Consumers find themselves paying more money over a longer period of time just to pay off what seemed originally like a minimal balance on a credit card, but that because of monstrous interest rates has turned into a long-term commitment of repayment.  If you are feeling bogged down by interest rates, then Credit Counseling/Debt Management might be a viable option for you (in that it guarantees you a lower interest rate than you would be paying if you can continued just making the minimum payments to your creditors every month.)    


Is Credit Counseling/Debt Management Right For Me?

As a program, Credit Counseling/Debt Management is most appropriate for consumers who are not struggling to make their monthly payments, but nonetheless have become frustrated over the fact that making those regular payments has done very little to reduce their debt load over time and are also interested in reducing the interest rates they are responsible for paying every month.  This is also one of the best options for consumers who wish to avoid creditor collection actions as well as "delinquent" marks on their credit reports.

 


Here are a few of the benefits of Credit Counseling/Debt Management:

  • In most instances, the credit counseling company will successfully negotiate with your creditors to secure a lower interest rate as it pertains to a Credit Counseling/Debt Management program 
  • Pay off your credit cards within 36 months by choosing a Credit Counseling/Debt Management program.  If you continued to make only the minimum monthly payments on your credit cards, it would take you at least twice as long to pay off your entire debt load



Here are a few of the disadvantages of Credit Counseling/Debt Management:


  • Statistics show that Credit Counseling/Debt Management programs have a staggering completion rate of only 20% (which translates to roughly 8 out of 10 people opting out of the program midstream and ending up right where they were pre-enrollment.)
  • In order to repay all of your unsecured credit card debt in the short time frame of 36 months, the minimum payments that come with a Credit Counseling/Debt Management program are necessarily costly (typically 2-3% of the balance owed.) While this figure might sound incredibly high, for a consumer carrying a moderate debt load, this dollar amount usually closely mirrors the combined total of all minimum payments being made prior to enrollment.  For this reason, Credit Counseling/Debt Management is best suited to consumers who are not struggling to make their minimum monthly payments, but simply want reprieve from the high interest rates imposed by the credit card companies.  
  • While this program does not negatively affect your credit score, it does show up on your credit report that you are enrolled in such a program.  Many lenders view Credit Counseling/Debt Management in the same negative regard as a Chapter 13 Bankruptcy.  This means that most banks are unlikely to lend to consumers enrolled in a Credit Couseling/Debt Management program, whom they view as being in nearly dire financial straits and are therefore too high risk to gamble with extending further credit to.  


To learn more about Credit Counseling/Debt Management or to see if your situation qualifies you for this program as a solution to ridding yourself of your unsecured credit card debt once and for all, call High Level Debt Solutions at 1-844-220-9642 now to speak to one of our qualified credit counselors who will provide you with a no-cost quote of what you can expect to pay and the savings you can hope to enjoy by enrolling in this or one of the many other programs we have access to.  What have you got to lose except for MORE of your hard-earned cash in high interest rates? Call High Level Debt Solutions today at 1-844-220-9642