CHICOPEE, Mass. (Mass Appeal) What are the differences between Debt Management and Debt Settlement? Todd Christian from Cambridge Credit Counseling in Agawam is here with some ideas.
Debt Settlement fees
- Percentage of the total indebtedness or the amount settled on
- Tax liabilities if $600 or more in principal is forgiven(check with IRS)
Debt Management fess
- Free Financial assessment from certified credit counselor
- If a debt management plan is appropriate then the fees should be small, and upon your ability to pay
Things to avoid in a debt management program
- Quick payment quotes
- Claims that they can perform a financial assessment in 5 or 10 mins.
- Rushing you into a plan
- Claiming to eliminate your debt.