Credit Counseling vs. Debt Consolidation in Lubbock

2 min read

If you’ve been trying to get out of debt, you’ve probably looked into the various choices accessible to you. Credit counseling is a terrific choice for getting out of debt and teaching you how to keep out of debt in the future. However, another feasible debt relief option is debt consolidation. So, which one between credit counseling and debt consolidation is better?

What exactly is credit counseling?

Credit counseling involves engaging with a trained credit counselor to assist you in overcoming your financial obstacles. These obstacles can be insurmountable debt or even budgeting difficulties. 

If you take this option, your counselor may:

  • Provide student loan counseling to assist you in determining your available alternatives.
  • guide you throughout the process of creating a personal budget. They frequently use customizable worksheets.
  • Suggest a debt management plan to assist you in the following:
    • consolidating chosen monthly obligations
    • lowering or eliminating interest
    • repaying enrolled unsecured loans within three to five years

What exactly is debt consolidation?

Debt consolidation in Lubbock combines various debt accounts into a single account, generally a consolidation loan. As a result, you can consolidate debts like:

  • credit card debt
  • school debt
  • unsecured personal loans

Debt consolidation can provide various advantages:

  • Reduced monthly payments
  • Reducing the number of bills you have to deal with
  • Lower payback expenses

Choosing Debt Consolidation or Credit Counseling

The more intricate your situation, the more credit counseling in Lubbock makes sense, even if only for your peace of mind. A financial professional can set you on the right track to financial stability. It is most applicable if you need to solve an immediate problem and learn how to avoid repeating it.

Debt consolidation appears viable if you believe you have a good handle on your debt issue and merely need to simplify and lower your monthly payments. In addition, this method is preferable if you have strong credit and can qualify for a cheap interest rate.

Debt consolidation and credit counseling are two financial methods that most people do not combine. Your financial position will determine whether debt consolidation or credit counseling is the right option. However, if you’re looking for debt relief, it’s better to act sooner rather than later.