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Debt Settlement vs. Debt Management


If you owe lots of debt, you may be looking for the best way to get rid of it. Maybe you’ve considered debt settlement or debt management. Both approaches to debt relief may help you reduce or eliminate your debt. However, there are major differences between the two.

Debt settlement is a strategy where you stop making payments to your creditors. Instead, you make payments to a debt settlement agency. Eventually, the company will negotiate to pay your creditors a percentage of what you owe. But, your creditors may not accept the offer, leaving your gamble a loss.

A debt management program (DMP) is the safer solution. With a DMP, a credit counseling agency helps you develop a budget to pay down your debt. They will work to lower your interest rates & make payments on your behalf.

With debt settlement, your creditors may not accept your offer. You will then not only owe your original debt, but additional fines & legal fees. Your credit score will also severely drop. A DMP allows you to keep paying your creditors & will preserve your credit score. Before deciding, it’s important to get the right advice. That’s where American Consumer Credit Counseling can help you. As a nonprofit, we offer free credit counseling sessions. We also offer low-cost debt management services & financial education. Call ACCC today to explore your debt-relief options!

American Consumer Credit Counseling (ACCC) offers consumer credit solutions ranging from debt counseling and debt consolidation relief, to pre-bankruptcy counseling and post-bankruptcy debtor education. If you are seeking debt consolidation options, ACCC offers a simple and effective consolidation program that's more prudent and beneficial than a debt settlement solution or taking out loans for debt consolidation. For personalized credit counseling advice and to learn about the best way to consolidate debt, contact an ACCC credit advisor today.

American Consumer Credit Counseling - Consolidate Debts - Better Business Bureau American Consumer Credit Counseling - Consolidate Debts - Mass Housing Approved National Industry Standards for Homeownership Education and Counseling American Consumer Credit Counseling - Consolidate Debts  - Council on Accreditation American Consumer Credit Counseling - Consolidate Debts  - NFCC Member