Traditional Credit Counseling Vs Specialized Debt Management ...

There are some significant differences between traditional credit counseling and a specialized debt management that maybe a concern for you.

In traditional credit counseling:

Your accounts have to be in default or late to be eligible for their program.All of your account must be included.They get a credit report on you to make sure all your accounts are listed.They disburse payments to your creditors twice a month.They have a credit card ?cutting? ceremony.You will sign a form agreeing not to apply for any new credit while in the program.In a specialized debt management program additional efforts are made to help you take control of your finances. You will likely need access to credit while you are in the program. You can keep one card out of the program you can use for business, travel, emergencies etc.

Entry into a debt management program is not a negative entry on your credit report. Most creditors don?t report it to the credit agencies. Those that do report it remove the entry as soon as your debt it paid. It does not stay on your report for years like negative entries do.

Specialized Debt Management

In a specialized debt management program your accounts are handled with a bit more care than in a traditional program.

You can be current on your debts and still enjoy the benefits of a debt management program.You do not have to include all of your accounts. You can add more accounts at anytime during your programThere are no ceremonies, only results.With timely payments your credit scores will improveYou are encouraged to keep on card out of the program for use in business, travel and emergencies.Your creditors due dates are coordinated so that there are no late payments to them. Payments to creditors are made daily. The best use electronic payments.You pay your debt in full. Creditors don?t punish people that pay their bills. If you are able to make payments, but you are not making progress in paying down your debt, a debt management program maybe the perfect debt solution.

You do not need to fight this on your own. There are solutions in place that benefit you from the beginning to the end.

You life will be very different once you are debt free. It can be done and your can do it.

Hope that helps a little.

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Source: http://www.softscribes.com/traditional-credit-counseling-vs-specialized-debt-management.html

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