What is the difference in consumer credit counseling and debt settlement?
If you're struggling to manage your debts, then credit counseling can help you find a way out. Federal law now mandates that all bankruptcy candidates receive credit counseling before filing. However, credit counseling services can also help you long before bankruptcy becomes a possibility. credit counseling offer a wide range of solutions based on your specific situation. They'll review your finances, advise you about budgeting, and devise a program to help you get out of debt. Where as in debt settlement your debt amount gets reduced. When a debt is settled for less than its full value, the creditor will note that on your credit report. The damage is much less than you'd experience with bankruptcy or default, and in most cases your credit will improve within a couple of years.
CCCS refers to a consumer credit counseling service that provides credit counseling and other financial education to the communities it serves. A consumer credit counseling service is a nonprofit charity. Additionally, organizations that carry the CCCS name are members of the National Foundation for Consumer Credit (NFCC).