New York Debt Consolidation Quote explains how to choose between two types of debt consolidation

New York Debt Consolidation Quote, an online resource for debt consolidation information, published an article on June 2 about the two options to consolidate debt. The article entitled "How To Make The Right Choice Between Debt Consolidation Loan And Debt Management," discusses tips on how consumers can select the right debt solution for their financial needs.

The article acknowledges how confusing it can be to choose the right debt relief program to help with credit problems. However, if made aware of the signs that will point towards the right direction, consumers will find the perfect solution easily.

Choosing between debt consolidation loan and debt management is confusing because they have quite a few similarities. The article begins by citing them one by one. Here are the similarities as discussed in the article:

1. Provides a single payment scheme. The two debt relief options combines the multiple debts of the consumer to make payments more manageable.
2. Lowers the monthly payments. Through a longer payment term, the debt balance of the consumer is lowered in both debt consolidation types.
3. Requires a steady income. There is no debt reduction in debt management and debt consolidation loan so consumers need to have an income to support payments.

The article cites no more similarities after. In terms of the differences, the article states that this is what the consumers can use to base their final selection. These are the differences cited in the article:

1. Professional help. Debt management involves the help of a debt counselor while debt consolidation loan does not have that aid automatically available to them. If the consumer thinks that they need professional guidance, they should be opting for debt management.
2. Requirements. Debt consolidation loan involves applying for a loan so the consumer has to have the right requirements. For instance, a good credit score or a collateral should help the consumer get a low interest on the loan. Debt management does not really need all these requirements - except for the $50 service fee.
3. Additional perks. Debt consolidation loan is at a disadvantage here because debt management has additional perks that includes personal finance education from the debt counselor. Since there is no professional involved in the former, the consumer will have to avail of credit counseling separately.

New York Debt Consolidation Quote hopes that through this article, consumers will make a smarter decision in their choice of debt relief. Read the rest of the article by visiting www.NewYorkDebtConsolidationQuote.com.