Debt Consolidation or Debt Counselling?

Debt Consolidation or Debt Counselling?

The NCR are on a drive to help consumers understand the difference between Debt Consolidation and Debt Counselling. They feel that sometimes consumers may think they are signing up for one or the other but not really decern the difference between the two. A consumer may think that because they are told they will be making just one payment a month toward their debt that they are actually getting a debt consolidation loan to pay off their small debts with one big debt. However, this may not be what is happening since the consumer may actually be entering debt review where only a single debt repayment is made by a consumer via a Payment Distribution Agency to the various credit providers.

Debt Consolidation creates more debt while Debt Counselling reduces debt through the courts.

Leave a Reply

Your email address will not be published. Required fields are marked *