Debt settlement can be helpful in the reduction of your debts.
The credit card companies do not want to lose their money which they have lent to the borrowers at the time of their needs.
When the borrower goes for bankruptcy and his proposal is accepted then the credit card companies ultimately have to face loss.
This is the reason why the credit card companies have devised their policies for the debt settlement programs.
A person can also suffer due to the settlement program because some fake companies are also working in the markets which may lead him to total loss because they do not have their previous records and have no such expertise in managing their finances.
These companies only want money and they do nothing for the good of their clients.
Therefore, a person has to be very careful in the selection of the debt settlement company which are registered and have previous records along with experience.
Debt settlement program not only saves your money but also reduces your loans.
This procedure requires less time and converts your debts into half which will lead towards full financial freedom.
On the other side, credit counseling cannot eliminate your credit card debts.
Credit counseling is actually the way through which the borrower spends.
This counseling changes the money spending habits of the consumer due to which the liabilities become easier to be paid off.
Many companies are working for credit counseling.
The private companies may charge a person with high rates for the services which they are providing while the companies under the military and the government charge less.
Credit counseling deals with the management of debts not with the settlement.
This procedure can save a person from bankruptcy.
Bankruptcy is very harmful for the company as well as the debtor's future financial life.
Credit counseling is more beneficial than the settlement program if we consider it as a life time practice.
It is an advice that after coming out of debts, use the credit card wisely so that you can maintain a better financial position.
Therefore, If you are stuck with the debts of $10,000 then the settlement deal will be a wise way for the eliminating your liabilities.
But if you want to learn how to manage your expenses and income, then you should avail the counseling program.