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| Credit Answers > Debt-Management-Articles-2009 > Debt Settlements = Results |
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Many consumers receive results from debt settlement companies. According to
The Association of Settlement Companies (TASC), consumers seeking to manage their debt have higher success
rates when using credible debt settlement companies rather than credit counseling services. TASC, the non-profit watchdog organization for self-regulating the debt-settlement industry, gathered the
information from various sources, including the Consumer Federation of America and National Consumer Law Center, the Executive Office for the U.S. Trustees and testimony by credit counseling
companies.
With both shorter program durations and lower budgeted monthly payments, debt settlement programs frequently see higher success rates and fewer dropout rates. Other differences between credit counseling
and debt settlement are:
Debt settlement companies do not receive any fees, contributions or other forms of compensation from any entities other than the debtor client. Meanwhile, credit counseling companies get money
each month from their customers, plus they receive "contributions" from credit card companies and "fair shares" from banks.
Debt settlement programs are typically 36 months or fewer. Credit counseling programs are usually 60 months or more.
For consumers that complete programs, the total cost of a debt settlement program is usually about half the cost of a debt management program offered by a credit counseling company.
Debt settlement programs achieve individualized and customized results depending on a consumer's circumstances and needs. Credit counseling payment plans are fixed payments over a length of time.
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