Q: How long will it take me to pay off my debt using a consumer credit counseling service?

A: This question is impossible to answer without knowing more specifics about your situation. Chapter 13 bankruptcy, (i.e., individual reorganization), for example, is somewhat similar to the debt management plans (DMPs) offered by consumer credit counseling services, and it lasts either three or five years, after which, all qualifying debts are considered "paid in full." DMPs, however, do not work that way. Your debts will not be "forgiven" until they really are paid in full.

This does not mean that Chapter 13 is preferable to a DMP - far from it. While DMPs temporarily damage your credit, Chapter 13 is a serious black mark on your credit file for seven years. A DMP can lower your interest rates, consolidate your monthly payments, and have you debt free as quickly as possible, without the severe damage that bankruptcy causes your credit. In fact, after a temporary setback to your credit score, consistent payments through your DMP may actually boost your credit score in time.

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