1. Credit counseling is cheaper and less complicated than bankruptcy. Working with a credit counseling agency to draft a payment plan can save you time and money as opposed to filing for bankruptcy. Credit counseling does not require a fee or court appearance, and with careful planning your debt can be eliminated in under 5 years. Bankruptcy filing costs, attorney fees, and court costs can add up quickly, and the lengthy process can be very overwhelming.
2. Credit counseling can help protect your credit. Filing bankruptcy results in a large negative on your credit report, which can make it very difficult to obtain credit in the future. Credit counseling services will look for ways to manage your debts rather than walking away from them. A successful credit counseling plan can also remain on your credit report for up to 7 years.
3. Credit counseling gives you more control over your finances. Credit counseling offers you a sense of control, as you are in charge of your own payment agreements. The credit counseling agencies will offer advice and create a plan to ensure your debt is handled responsibly. With the help of a credit counselor, you can work out more favorable terms with creditors, reducing your payment amount and decreasing the amount of interest being paid on the debt.
Overall, credit counseling provides more benefits than bankruptcy. The cost is cheaper, the process can be completed with less hassle, it can help protect your credit, and it gives you control over your financial situation. With the help of a qualified credit counselor you can be debt free in no time, without the damaging effects of bankruptcy.
Article Created by A.I.