subject: Debt Consolidation Or Debt Settlement – A Simple Comparison [print this page] Debt Consolidation Or Debt Settlement A Simple Comparison
Although debt consolidation and debt settlement are both popular debt relief solutions these days, these two programs differ greatly. Understanding the unique differences between these two solutions will help you decide what solution will work better for you and your needs. There are advantages and disadvantages associated with both forms of debt control. Let's examine both options further to identify the differences, the advantages, and the disadvantages of each debt solution.
Debt consolidation is fairly easy if you choose a good company to work with. With a few simple phone calls you can be well on your way to getting your debt back under control. If you use debt consolidation services, you can either pay a company small fees every month that can eventually pay off your creditors or you can opt for a loan and pay off all your bills with the funds you are approved for. In contrast, debt settlement is a lengthy program and it can take several years before you see a resolution. You may have to hire a lawyer in order to get debt settlement arrangements underway, and there are myriad fees associated with such programs.
Some creditors may or may not be willing to work with a debt settlement representative or agent too and you will have to work out what bills you can get under the debt settlement program as well as the debts belonging to creditors that are less flexible. You may find that creditors like MasterCard and Visa are far less willing to settle your debts. Your initial workings with a lawyer or agent can prove overwhelming as you struggle to work with creditors and negotiate fees. What's more, debt settlement can sometimes become a public affair through advertising and publicity; creditors, not wanting that kind of publicity may refrain from doing business with you in the future.
Debt consolidation practices are far more private. There is no publicity or advertising involved when you opt for debt consolidation solutions. Debt consolidation allows creditors to collect more payments over a period of time so that they can recoup more of their losses. Even celebrities have made use of consolidation plans in order to pay back past debts and to get back on track again financially.
In conclusion, you will find that both debt settlement and debt consolidation have their benefits and their disadvantages. You will want to fully examine your options before you make a final decision about the type of debt solution that is going to work best for you and your needs. Do not let your decision intimidate you into not taking care of your debts; any positive move toward remedying your debts will provide you with a more stable financial ground to stand on. When your debts are paid off you will finally get the peace of mind you crave. Just take care that you work with a genuine and reputable counselor or debt settlement agency. Examine all your options, compare possibilities, and then move forward to manage your debts.
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