Is credit counseling better than debt settlement?

Credit counseling agencies provide debt relief through a debt management plan or DMP. You repay creditors in full over five years and save money through lower interest rates and waived fees. Debt settlement negotiates a lower payoff after you have missed payments and built up enough in savings to payoff the debt.

Will credit counseling hurt my credit?

A debt management program through a credit counseling agency will result in the closure of enrolled accounts, which will negatively impact your credit.

How long does credit counseling stay on my credit report?

5 years. The creditorswill make a notation on your credit file, indicating that you are in a debt management program through credit counseling. The notation remains as long as you are in the program, which is no more than five years. Any late payments will remain for seven years.

November 2020

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REPRESENTATIVE EXAMPLE OF APR

For example, a $30,000 loan with a 4.99% APR over 5 years (60 months) would result in a monthly payment of $566, with total interest paid amounting to $3,959.97. This could save you thousands in interest compared to higher-rate debt.

ANNUAL PERCENTAGE RATE (APR)

Annual Percentage Rate (APR) represents the annualized interest rate you are charged for borrowing. It is the combination of the nominal interest rate and some additional costs such as fees involved when incurring debt. Our lender offers APRs for personal loans, cash advance loans, installment loans and debt consolidation loans from 4.99% to 35.99%. Since New Start Capital does not directly issue loans, we cannot deliver any specifics or guarantee the APR you will be offered. The APR depends solely on your lender’s decision, based on various factors including your credit score, credit history, income, and some other information you supply in your request. For more information regarding the APR contact your lender.