US Financial Management, Inc.

The main purpose of debt settlement is to reduce the amount of debt by negotiating a lower amount owed (total) with your creditors.  With debt consolidation you are merely transferring the total amount of your debt to one loan (secured) without any reduction to the amount owed, which still leaves you financially vulnerable. With credit counseling, you can expect a reduction in interest rates and minimum payments, but not on the total amount owed. A good debt settlement program like MyDebtNegotiation can reduce your debt in half, establish payments that you can afford and get you debt free in less time.

Credit counseling companies typically categorize themselves as “non-profit.”  Many consumers confuse "non-profit" with no-charge or charity.  However, non-profit credit counseling companies generate millions of dollars each month, receiving most of its compensation from the donations of the creditors. This means they are basically working for your creditors, while charging you fees for their services.