Credit Counseling Services

There are a number of ways to look for debt relief. These include debt consolidation, debt settlement, bankruptcy, and credit counseling. Each one had positives and negatives and the most important consideration is which one will work the best for you.

If you'd rather speak to a debt specialist right away, get a free consultation today!

What is Consumer Credit Counseling?

Credit counseling can be through for profit debt relief companies or nonprofit credit counseling agencies. We at Pacific Debt Relief recommend choosing a nonprofit credit counseling agency.

During credit counseling, you will meet with trained credit counselors who will help you to learn more about financial management and improve your financial situation.

What Is a Debt Management Plan?

One of the most common methods that consumer credit counselors use is a debt management plan (DMP).

During a debt management plan, you lay out all the information about your outstanding debt. The counselors then contact the companies to get interest rates and/or fee waived. You may a single lump sum payment to the credit counseling agency each month. They then distribute the payment to the different creditors. This can be very effective with credit card debt.

This has the benefit of reducing late fees and charges, lowers interest rates, stops collection calls, and limits payments to a single monthly payment. There is no personal loan needed or any settlement of debt.

Is Credit Counseling Right for You?

Credit counseling can be perfect for someone who is just beginning to get into debt but need some help on budgeting.

They can also be very useful to understanding credit scores and improving them for a future big purchase.

If you are truly struggling and are considering bankruptcy, a credit counseling agency is probably not your best option.

If you'd like a free consultation, give one of Pacific Debt Relief's credit counselors a call. We will help you decide if credit counseling, debt settlement, or debt consolidation is best for you.

If you'd like to find out exactly how much you are paying in loan interest and principal, visit our credit card interest rate calculator.

If you would like more information on Credit Counseling, contact one of our debt experts for a FREE consultation.

See how much money you can save from our debt relief program.

A Better Get Out of Debt Alternative is Debt Settlement

Debt settlement offers a different perspective on helping debtors get out of debt. Debt settlement companies do not have sweetheart relationships with or subsidies from creditors. A debt settlement company's goal is to substantially reduce the indebtedness of its clients, not to merely extend their current debt payments over a longer period. In other words, the negotiations between a debt settlement company and a creditor are real, not a sham.

When you enroll with a debt settlement company you are making the conscious decision to withhold payments from your creditors in order to secure more favorable terms via the debt settlement process. Mortgages and car loans are not part of the process. Unsecured debt like medical debt and credit card debt is included.

For debt settlement to work, you stop paying credit card companies and other creditors. Instead, the debtor deposits program payments into a 3rd party escrow account at a financial institution and allows the balance build up. This may come with some damage to your credit rating, but this can be fixed with on time payments.

The debt settlement company then approaches each creditor and offers a settlement for less than the full balance. Sometimes this is a via lump-sum payment and sometimes the settlement is paid in installments.

In this way, the debtor gets out of debt with a program payment that is affordable. The tradeoff is that consumer's credit will be impacted in the near term due primarily to falling behind on their accounts prior to settlement.

Consumers must decide which course of action is best for them. For those who wish to end their debt quickly, Pacific Debt's program offers unique advantages over debt management plans and filing for bankruptcy.

Pacific Debt Relief

Pacific Debt Relief is a nationwide debt settlement company located in San Diego, California. We specialize in debt settlement and work with unsecured debt like credit card bills, medical bills, personal loans and other consumer debt.

We charge low monthly fees once companies begin to negotiate over your debt. You may see a temporary decrease in your credit score, but it will recover as you improve your financial. Click here for a FREE consultation today!