subject: Responsible Debt Relief - Try Credit Counseling [print this page] Due to the varied financial hardships caused by the recession, many consumers are now in the process of formulating a plan to take care of their credit card debt. While a large portion of them are battling to stay abreast of the mortgage payments on their upside-down properties, an even larger number are trying to cope with paying just the minimum monthly payments on their unsecured debt. The recession caused an unusual dependence on credit cards as a source of funds in these difficult times, and now this high-interest debt is festering and creating a drain on the already limited incomes of these borrowers. Many have no choice in the matter but to find a workable debt solution, as staying the course with making minimum payments offers them little more than a guarantee that the debt will still be a problem for a long time to come, perhaps even decades.
For those currently in this bind, a good way to approach the problem is to size up their solution options, beginning with the one that will cause the least damage when utilized. When unsecured debt is the problem, that option is credit counseling. Other solutions such as debt settlement (also known as debt negotiation) and bankruptcy are certain to do such severe damage to the borrower's credit, not to mention other significant shortcomings, that it is probably best to first consider a less punitive solution that will still provide the debt assistance needed. Credit counseling will have no effect whatsoever on the borrower's credit score while offering benefits such as reduced interest rates, repayment schedules of just 5 years or less and relief from collection phone calls, just to mention a few.
