Welcome to the forums. Comparing debt settlement5 with debt consolidation, each method has its own prospects.
debt settlement is a negotiated settlement of your unsecured debts where your debt gets reduced. Since it is a bankruptcy prevention program, it adversely affects your credit rating if the debts are current and there is no history of late payment.
However, Debt consolidation also covers your unsecured debts and it gets consolidated into one lower monthly payment. The difference is that your entire amount owed as well as interests are still owed and you will need to cover everything.
Presenting both cases, when consumers have outstanding balance with more than one creditor, debt consolidation will be beneficial. On the other hand, when the consumers have huge outstanding debts and there is no way left to pay them off and declare bankruptcy, debt settlement will be the best move.
If you are left in a fix of which one will be the best choice, please have a look at
By signing up for counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the pay off amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.
Posts: 3957
Credits: 55973.9 Send message to roxette
Hi Diana,
Welcome to the forums. Comparing debt settlement5 with debt consolidation, each method has its own prospects.
debt settlement is a negotiated settlement of your unsecured debts where your debt gets reduced. Since it is a bankruptcy prevention program, it adversely affects your credit rating if the debts are current and there is no history of late payment.
http://www.debtconsolidationcare.com/debt-settlement.html
However, Debt consolidation also covers your unsecured debts and it gets consolidated into one lower monthly payment. The difference is that your entire amount owed as well as interests are still owed and you will need to cover everything.
http://www.debtconsolidationcare.com/benefits.html
Presenting both cases, when consumers have outstanding balance with more than one creditor, debt consolidation will be beneficial. On the other hand, when the consumers have huge outstanding debts and there is no way left to pay them off and declare bankruptcy, debt settlement will be the best move.
If you are left in a fix of which one will be the best choice, please have a look at
http://www.debtconsolidationcare.com/decide.html
Please let us know your feedback.
Regards
Roxette
Add new comment