Debt Consolidation Vs Credit Counseling - Exploring Debt Reduction Options

With so many debt reduction options available to you, it's easy to get
confused on which is the most effective. Debt consolidation allows you to
lower interest rates and payments on your own. But credit counseling can
help you find other ways to reduce your debt and develop future financial
goals.

Going Alone With Debt Consolidation

Debt consolidation is a quick way to reduce your interest charges and
monthly payments. With secure loans, like a cash out refi, your rates can
drop by half or more. You can also select terms that give you a reasonable
monthly payment.
Remember though that the longer the loan, the higher the total interest
charges will be.

Selecting a fixed rate loan also gives you the security of knowing what your
payments will always be. There's no worry that a jump in the minimum payment
will send you into the red.

It's important to be a careful shopper when selecting a consolidation loan.
Differences in rates and loan fees can mean savings of thousands of dollars.
Fortunately, online lenders and broker sites help you get quotes in a few
minutes. You can also finish your loan application online, with most loans
closing in two weeks or less.

Getting Third Party Help With Credit Counseling

Credit counseling brings a new set of eyes to your debt issues.
As experts in debt reduction, credit counselors can help you develop
strategies for eliminating your debt. This might mean developing a budget
with a debt consolidation loan. Or they may suggest using the services of a
debt manager.

Credit counselors can point out areas where you can save money, such as
switching account holders. They also help you plan for the future by
developing a savings strategy. Credit counselors aren't simply focused on
reducing your debt; they look at your entire financial picture.

Picking The Best Option For You

Credit counseling is best for those who want to do a total makeover of their
finances. It's ideal for those who want to make long term changes, but need
help in deciding what are their best financial choices.

For those who strictly want to get out of debt, consolidating your loans is
a good choice. In a short amount of time, you can save yourself money with
better rates.

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