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Posts Tagged ‘consumer credit counseling’

If perhaps you’ve been considering debt options for your unsecured debt, then you’ve probably come across quite a lot of articles that explore consumer credit counseling and debt management programs. The exact structure of the relationship between debt management and credit counseling is definitely confusing. This is due to the two terms commonly seem to be used interchangeably, so much so that it gives the perception that they might essentially be one in the same. They aren’t the same. You will find organizations called credit counseling agencies, often referred to simply as “credit counseling”. As you could suspect, these companies provide financial counseling to individuals. Together with this counseling, they supply a debt relief plan for unsecured debt that boasts a number of advantages, the most notable of which is reduced interest rates. The program is generally known as a debt management plan (DMP), usually referred to simply as “debt management”, and indebted consumers must go through a financial analysis and meet particular criteria in order to qualify for the plan. So debt management programs and credit counseling aren’t the same or interchangeable, but they are closely associated. It should also be noted that in addition to credit counseling agencies, indebted consumers can also enroll in Dmp’s via different kinds of debt solution agencies.