Credit Coaching by Kristi22 Feb 2023

Debt Management Plan vs. Debt Settlement

Hi friends! It's our anniversary! 3 Years today launched this podcast! And this is the 99th episode- so THANK YOU! for being part of this journey. I hope this information has helped you have a better understanding of credit. Would you please provide a great review if I have helped teach you something new, maybe share what you like (so I do more of it each episode!). Appreciate ya!

Debt management plans and debt settlement companies are two VERY different things. Their business model is different, their impact on your credit is different and most people don't know they are two very different entities.

Debt management plans are non-profits with certified credit counselors (which require 60 hours of training and passing an intense exam through FINRA and they help negotiate terms to HELP you get your debts paid back by negotiating lower APRs and beneficial terms to make on time and total repayment.

Debt settlement companies are out to make money, serving themselves first, and then, after having your credit destroyed with late payments, your accounts being closed by the creditor, late fees added and possibly new collections or charge-offs now being created, they wait until your creditor and you have been hurt by lack of repayment methods and TRY to negotiate terms to settle for less than owed. VERY different ways to approaching debt that might be strangling you. Consider a debt management plan over a debt settlement plan.

I had mentioned credit.org in the episode, and I have NO affiliation with them, they are just one of the bigger good guys there to help if you need help paying off debt and want to consider options.

Questions@creditkristi.com

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