**BUK**RG** Debt counselling vs debt consolidation Credit guidance is intended to educate people on credit and money management issues. Consumers needing this type of assistance will typically be finding it difficult to liquidate their existing debts. Hence, the need for intervention aimed at offering solutions to their financial woes. Some of the advice presented to the debtor entails structured credit management plans. A close look at the issue of debt counselling vs debt consolidation reveals slightly dissimilar attributes of the two approaches. Although, they still serve the same fundamental goal of easing the burden of credit on heavily laden borrowers. From the outset it is easy to distinguish credit integration as a more proactive option in resolving debtors' woes. The mechanism goes beyond advice or words of wisdom offered by credit counselors through active reorganization of debts via credit providers. As such, the burden is eased through lower installments and longer repayment periods. Credit providers or financial institutions offer these options to their clients as a means of ensuring repayment. Credit counselors are often tasked to renegotiate on behalf of debtors concerning manageable repayment terms. In some instances, financial institutions or creditors will only accept reduced monthly repayments if the debtor is acting under a consolidating plan. The plans which make life easier for the borrower may also come with lower interest rates and fees. Credit counselors can only confirm positive developments or the extent of relief for the borrowers after securing agreements from the concerned credit providers. The act of consolidating debts commonly faces tough preconditions from credit providers or financial institutions pertaining to collateral. The lenders tend to demand that the debtor should attach an asset to the credit management plan. In some cases, borrowers are confronted with the prospect of re-bonding an asset(s). These conditions despite being somewhat unfavorable are still better than facing separate debts and creditors. However, even under the renegotiated payment plan debtors still stand the risk of losing their assets in the event of default on repayments. Debt counselling vs debt consolidation further shows that consumers should stick to strict personal financial controls or risk having to deal with credit management plans. As corrective as these measures maybe, they are still best avoided through careful borrowing and adhering to cash purchases. In principle, they cover various types of credit such as student loans and credit card debts. Federal student loan integration entails locking in of the credit rates and not adjustment. From the outset it is easy to distinguish credit integration as a more proactive option in resolving debtors' woes. The mechanism goes beyond advice or words of wisdom offered by credit counselors through active reorganization of debts via credit providers. As such, the burden is eased through lower installments and longer repayment periods.
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