When you're struggling with debt and looking for profession help, you have four options: credit counseling, debt negotiation, debt management, or debt consolidation. While credit counseling and debt consolidation are both pretty straightforward services, many people have trouble understanding the difference between debt negotiation and debt management. This article compares the two services, and it will help you to determine which service is right for you. First, ask yourself these questions:

Does My Problem Stem From An Inability To Afford My Debt Payments?
If you answered yes to this question, debt negotiation is probably the choice for you. Debt negotiation services call your creditors on your behalf and negotiate lower payments. You keep control of sending out your payments each month, but your debt negotiation company will negotiate payments with your creditors that you can afford. Additionally, if your reasons for being unable to afford your debt payments stem from a circumstance that is not beyond your control, credit counseling is usually available.

Does My Problem Stem From An Inability To Both Afford and Manage My Debt Payments?
If you answered yes to this question, then you're probably in need of the services of a debt management company. In addition to negotiating lower payments with your creditors, debt management companies will distribute your payments to your creditors on your behalf. You simply send them one combined monthly payment. If you have trouble remembering to pay your bills on time every month, your credit will greatly benefit from the services of a company that ensures timely payments.

Debt management differs from debt consolidation in that debt consolidation is a loan that consolidates all of your debts, and debt management is just a service that calculates the balance of all of your payments and combines them for you. With debt management, you still hold all of your original credit accounts.

The most important part of seeking professional debt services is getting counseling in order to prevent future debt problems. Any professional debt service should also provide counseling in order to teach you how to stay out of debt once their services have ceased. Debt services are not meant to be a way for you to escape your financial responsibilities; rather, they are a way for you to educate yourself on responsible handling of your credit and debt.