Which is better, debt settlement vs debt consolidation? The answer depends on how you look at it. Both debt settlement and debt consolidation came in as ways to relief debt, though they really are very different from each other as well. Basically, debt settlement helps in reducing the amount of debt you actually owe by negotiating with your creditors. Click Here to know more details about debt settlement and debt consolidation.
This can be done through a debt settlement company, which can help negotiate with your creditors and get them to knock off some of the debt that you owe them. Essentially, the creditor will just accept less than the full amount you actually owe them. They usually do this because they feel more confident that there won’t be any legal action brought against them should you default. The whole thing works under the premise that if you keep paying your monthly payments until you are totally debt free, eventually the creditors will just write off the debt, and you will be left with a debt settlement vs debt consolidation comparison. It’s a great deal for you!
There are many things to take into consideration when comparing debt settlement vs debt consolidation, though. For one, you must consider how much debt you currently owe, and exactly how much money you are trying to pay off each month. If you currently owe more than ten thousand dollars and if you’re trying to reduce that to just four thousand dollars, then debt settlement vs debt consolidation might be a good idea for you.
However, if you just owe four thousand dollars and you’re paying an extra twenty percent on your credit card debt each month, debt settlement vs debt consolidation might not be the best thing for you. Here’s why: if you have to give up your credit cards in order to get out of debt, then how will you be able to do so? How will you be able to pay the twenty percent off? You can’t, and unless you take some sort of loan or mortgage from someone, you’ll end up having to face bankruptcy. If this is happening to you, then debt settlement vs debt consolidation just aren’t a very good choice for you.
Debt consolidation is a better choice for those who want to only have to make one payment per month and one creditor per bill. Debt consolidation can mean a lower interest rate and more affordable monthly payments, which are a huge benefit for many people. But if you’re going through a settlement, you’ll usually have to give up your credit cards as well as anything else secured through a credit card. If you’ve already paid off your credit cards, but you still owe money on them, debt consolidation probably isn’t for you. The problem with debt settlement is that it usually involves getting a loan to pay off all of your credit cards, which means that you’ll have to have a high credit score to even be considered for the loan.
The best option for debt relief is debt settlement vs debt consolidation. If you have a legitimate settlement or consolidation company working for you, they’ll work with you to help you negotiate with your creditors for a lower interest rate and easier payment plans. They’ll also help you manage your monthly payments so that you stay on top of your finances and you don’t end up struggling with money problems again. By using debt settlement vs debt consolidation, you can easily find out which option is right for you and your situation.