Consumer Credit Counseling and Debt Management

On September 01, 2010 in Uncategorized

If you may have been researching your possible debt solutions for unsecured debt, then you have likely discovered plenty of articles that focus on debt management plans and consumer credit counseling. The exact dynamics of the association between consumer credit counseling and debt management programs can be unclear. This is due to the two terms commonly seem to be used interchangeably, so much in fact that this gives the sense that they might actually be the same. They are certainly not the exact same. There are actually companies called credit counseling agencies, occasionally known simply as “credit counseling”. As you could suspect, these agencies provide financial counseling to consumers. In addition to this counseling, they supply a debt solutions plan for consumer debt that provides several benefits, the most prominent of which is decreased rates. The program is referred to as a debt management program (DMP), oftentimes known simply as “debt management”, and consumers must go through a financial analysis and satisfy specific criteria to be able to qualify for the Dmp. So debt management plans and consumer credit counseling are not the same or interchangeable, but they are closely connected. It should also be noted that aside from consumer credit counseling agencies, consumers can also enroll in debt management plans using other types of debt relief agencies.

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