A Guide to Consumer Credit Counseling and Debt Management

June 11, 2012 - PRLog -- When debt begins to build up uncontrollably, it may seem as though the only way for you to get out of debt is to file bankruptcy and deal with all of the negative repercussions that come with it. Luckily, there is another option… in many cases a service known as consumer credit counseling and debt management can help you to avoid bankruptcy while eliminating your debt and getting you back to where you need to be in regards to your credit.

Get Started With Debt Management:

http://www.nationaldebtreliefprogram.org/

A variety of consumer credit counseling and debt management services have come into being within the past several years, and so long as they continue to provide services that help individuals avoid personal bankruptcy, it seems that there will be a need for these services for some time to come.

What Is Consumer Credit Counseling?

It is a method for resolving the debts of an individual without filing for bankruptcy, using a third party to negotiate settlements with creditors and to assist in budgeting money for debt repayment. Consumer credit counseling and debt management services don't issue loans or offer any sort of repayment themselves; they simply help you to manage your money so that you can repay your own debts, while at the same time working with your creditors in an attempt to get them to reduce the total amount that is owed. This allows you to pay a reduced amount, while it allows your creditors to avoid the additional expenses of collection attempts and possible court costs.

Get Started With Debt Management:

http://www.nationaldebtreliefprogram.org/debt_counselor_h...

How Does It Work?

It operates in two ways... they are either non-profit organizations that operate off of government grants, or they are for-profit organizations and charge a nominal fee for their service. Regardless of how they make money, the core of the service that is provided remains the same; negotiation with creditors (many of whom they already have contacts with) and assisting individuals in debt with their budgeting and repayment.

Depending upon the amount of money that is owed, some people can get through the credit counseling service rather quickly and have all of their debts reduced and repaid. Others may find themselves taking several months or possibly a year or more to repay their debts, even after negotiations reduce the total amount owed. The time spent doing so is usually worth it, however, as the individual who spends a year or more would likely have no other option aside from bankruptcy if they had not chosen credit counseling.

National Debt Relief Program offers a free debt analysis which can be taken advantage of at their website:

http://nationaldebtreliefprogram.org/