Credit counseling is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education. Credit counseling often involves negotiating with creditors to establish a debt management plan (DMP) for a consumer. A DMP may help the debtor repay his or her debt by working out a repayment plan with the creditor. DMPs, set up by credit counselors, usually offer reduced payments, fees and interest rates to the client. Credit counselors refer to the terms dictated by the creditors to determine payments or interest reductions offered to consumers in a debt management plan. Some DMPs advertise that payments can be cut by 50%, although a reduction of 10-20% is more common. An alternative to DMPs and credit counseling is debt settlement. If you are considering credit counseling, we strongly urge you to discuss your alternatives with one of our professionals. Unlike credit counseling, debt settlement can lower payments up to 50%. For more information on credit counseling and debt settlement, call 1-888-888-1072. If you would like more information, fill out the form above or call us at 1-888-888-1072! >>
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