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What's the difference between a debt consolidation loan and debt counseling services? |
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Answer
With a debt consolidation loan, you're taking out a loan in order to consolidate your debt. You'll need decent credit in order to do this or you'll at least need a co-signer.
With credit and debt counseling services, it doesn't matter what type of credit you have. There are nonprofit organizations that offer this type of service and those are the ones that are usually wiser to go with. The fly-by-night debt counseling services should be avoided at all costs. Debt counselors will tell you what you need to do in order to get out of debt and they will establish a plan that you will need to follow. Some debt counselors will actually negotiate lower interest rates with your credit card companies and will consolidate your monthly payments for you, much like a debt consolidation loan.
First answer by ID1096311559. Last edit by ID1096311559. Question popularity: 70 [recommend question]
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