The credit counseling and bankruptcy are two ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you. Credit counseling is a program designed to help those who are in a state of debt and can not find a solution to their debt problems. They offer services that will allow you to work with a certified credit counselor to devise a plan that fits your specific needs and goals. Credit counseling agencies often provide services free of charge and will help educate you on how to avoid financial problems in the future, offering classes in debt management seminars. Do not clear your debt. Instead, work with you to the money in the budget to pay the debt often for debt consolidation. Collection will continue through the use of a credit counselor, however, in most cases, companies that owe money to try to work with you to help pay their loans.

The credit counseling services often help restore credit after paying the loans. Official site: Sen. Sherrod Brown. Bankruptcy is very different. It is completely clear your debt in most cases and no longer be disturbed by collection agencies and lawyers. There are two types of bankruptcy, which is right for you depends on your situation. When you file for Chapter 13 bankruptcy are able to maintain the property being mortgaged their house or car and is expected to pay the debts in three to five years.

Under Chapter 7 bankruptcy, you must renounce all property and assets it owns. There are exceptions in some states for items such as tools and household items. Bankruptcy certainly clear your debts and stop foreclosures and wage garnishments, however, you can not establish credit for up to ten years. Filing bankruptcy can also be very expensive compared to credit counseling. Take your time and research credit counseling very carefully before deciding on bankruptcy as it can save your credit in the long term. Most people feel much better about themselves when they can pay their debt and educated about how to stay out of debt rather than declare bankruptcy. Timothy Gorman is a successful Webmaster and publisher of Debt Relief-Solutions.com. a l provides debt relief, consolidation and you can research in your pajamas on his website.