Debt Reduction: What You Need to Know
by: Dan Cavalli Business and Money Strategist
Are you thinking about the different ways through which you might be able to get a debt reduction? Fortunately, there are quite a number of different options available to you and all a person really needs to do is find one that would suit their needs perfectly. After all, every debt and need is different. How to Dominate Your Target Market in any Economic Climate:
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The first thing that a person has to understand when it comes to getting debt reductions is the fact that it is very different from debt counseling. There are people who readily assume that if they were to partake in debt counseling, it would automatically have an effect on lessening their debt. This is certainly not the case. For some people, there are only two different options towards the road to reducing their debt. Debt Reduction Programs – 3 Tips to Get Out of Debt Quickly
They could either choose to enroll themselves into a credit counseling program or enroll into a debt reduction program. Of course, many are confused as to the purpose of both options and as such, they might have a hard time when it comes to choosing one. Now, to help you make a more informed decision, here’s a quick overview of some of the key differences between credit counseling and debt reduction.
1. When it comes to a credit counseling program, you would be required to close down all of your existing credit accounts with the exception of those that you need for business or those with very small to zero balances. On the other hand, a debt reduction program would not require you to do so. Now, do keep in mind that it is good to have a few credit cards handy just in case you run into emergencies. If you are not comfortable with closing down your accounts then perhaps the reduction programs would be better for you. More business and money tips at
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2. Completion Period – Credit Counseling services do tend to take longer when it comes to reaching completion when compared to debt reduction programs. In fact, the typical time it takes to liquidate your debt through credit counseling would take around 5 years to complete whereas the reduction programs would only take less than a year. Now depending on your needs, you can opt for the lengthier one or choose the option that completes quicker. FREE ABC's of Success at: http://www.commandobusiness.com
3. Cost Saving – Now, it is no secret that one of the advantages of using a reduction program instead of a credit counseling service would be the cost of savings that you’ll be able to get. In a reduction program, you are only required to pay a settlement amount of about 20% to 60% of the amount you owe. On the other hand, a credit counseling service would have you repay the full amount with some discount and with the interest waived.
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When it comes to choosing between the two, you must first assess your current financial situation in order to figure out which option would be the best one to utilize. Now that you are familiar with some of the important differences between the two, making an informed choice would be easier to do thus allowing you to choose the one that best suits your needs.
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About the Author DAN CAVALLI’s noted by the “Financial Review” as one of Australia’s “Internet’s Untold Millionaires”. He is also the author of the internationally sold financial book, "Blueprint for Making Millions." Get your FREE chapters here: www.blueprintformakingmillions.com