There are generally two types of debt elimination programs:
1. companies and agencies that represent the creditor’s interest, and 2. those that represent your interest.
Non profit credit counseling agencies receive their funding from banks, credit card companies, and other creditors that you owe money and therefore represent their interest first.
Debt settlement lawyers are retained and paid for by you and represent your interest. Debt settlement is a legal debt elimination program for unsecured credit card debt elimination.
Non profit credit counseling agencies can help you to consolidate your debts by combining all your monthly payments into one, reducing your interest rates, and stopping late and over-limit fees. This is called a Debt Management Plan (DMP) is very popular as a legal debt elimination program.
This allows you to pay off your balances in a reasonable amount of time. But most legal credit card debt elimination programs offered by Non profit credit counseling agencies may result in negatively affecting your credit history.
Most credit counseling agencies will demand that you minimize your credit card use during the period of debt elimination. Some debt settlement stratigies recommend eliminating the credit card debts with the highest interest rates first. Others may recommend to eliminate those with smallest balances first.
Legal credit card debt elimination programs usually cover all unsecured credit card debts such as those with Visa, MasterCard, Discover, and American Express cards. Department store debts, gas station charge cards, and secured loans such as home, auto, and boat loans, and student loans are often not covered under this process.
Getting legal credit card debt elimination is a difficult and lengthy process. There are many types of credit card debt elimination plans. It is helpful to have short-term and long-term goals in mind before you go for debt elimination. Before signing a contract ask your creditors for a lower interest rate. Remember that usually you are not permitted to engage in any new obligations after a credit card elimination process has started. You also have to make your minimum monthly payments on time to the credit card company until the debt is eliminated.
The best legal debt elimination program is debt settlement because you can reduce the amount you pay back, and reduce your monthly payments. Most creditors will show the debt as “paid” on your credit report, and it is quite easy to rebuild your credit score and credit rating.
Disclaimer Legal Information Is Not Legal Advice This site provides information about the law designed to help users safely cope with their own legal needs. But legal information is not the same as legal advice -- the application of law to an individual's specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.
Consumer Credit Counseling Information, Debt Management Plan Information, Debt Settlement Plan information, Credit Counseling, Credit Score, Consumer Credit Counseling Service, CCCS, Bill Consolidation, Credit Repair, and Debt Consolidation is not advice, and we recommend you consult a licensed credit counseling agency, debt settlement attorney, and/or licensed debt management plan administrator in your state if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.
