Debt settlement, debt consolidation and debt counseling dif!
Date: Tue, 03/06/2007 - 13:43
Sorry for the stupid question, but could someone clarify to me one thing.
debt settlement vs. debt consolidation
I understand precisely how debt settlement/negotiation works. (3rd party or me negotiate debt to lump sum cash settlement
I understand how credit counseling work (lower interest, one monthly payment to 3rd party, they pay all creditors. pay debt + lower interest or and fees)
Now my question:
according to the http://www.debtconsolidationcare.com/debt-solution.html
debt consolidation can reduce the payment by 30-70% - so how is it any different from negotiation/settlement?
Is there any difference?
Please I'm confused..
My understanding was that debt consolidation reduces your debt b
My understanding was that debt consolidation reduces your debt by lowering interest rates and eliminating fees.
yes. Mine too.. So will it result in 30-70% decrease in total de
yes. Mine too.. So will it result in 30-70% decrease in total debt? (how long you have to be deliquent to accumulate so much interes/fees..)
In my case I'm still current, but will be deliquent next month... Will the consolidation will help me than?
In this case what's the difference between credit counseling and consolidation?
The basic difference is that you pay the principal amount in the
The basic difference is that you pay the principal amount in the consolidation program whereas in debt settlement plan, the total balance is negotiated for a lower amount. The principal amount is also included in the part of the negotiation.
3 types of consolidation
there are 3 types debt consolidation .
1) debt settlement/negotiation
2)credit counseling
3)consolidation loan
The types of programs that advertise 30-70 % is debt settlement.
You mentioned that you are about to go behind. How much unsecured debt do you have and with what companies?
Thanks all!! Now it makes sense to me, when people with debt co
Thanks all!!
Now it makes sense to me, when people with debt consolidation - debt settlement interchangebly
I have almost 39k in unsecure debt with american express (5k), band of america (10k), chase (5k + 5k - 2 cards), citi (5k + 2.5k - 2 cards, discover 6k)
I am shopping for the debt consolidation program now.
I don't want to ruin my credit score a lot, I start a job in public accounting, right from the college, so I guess debt settlement will not look very nice on my record if the employer will want to check it.
I start in september. The summer job on the beach will carry me for couple summner month. But right now I don't have funds to pay around 900 in minumum payments..
So what do you suggest?
I really want to pay off debt as soon as possible. I even consider settlement - I'm not sure how it will effect my career in Public accountin...Will CPA look bad with settled accounts?
(my starting salary will barely cover minimum payment + rent and utilities).... This along makes me want to consider settlement...
I so hard to think straight when you in debt this much.