Debt Relief

Consolidation is better over settlement. A lot depends upon the repayment plan that will be offered to you by the dmp company. The payments in the consolidation plan are higher than settlement. If you can afford the consolidation plan, this will be good for your credit because your accounts will remain current and you will pay the debts at lower interest rates.

In case, you opt for settlement plan, the accounts will be turned delinquent for a certain period of months before the company will start negotiating with your creditors. You will be asked to put your money in a separate account and when the creditors have accepted the proposals from your settlement company, they will use that fund for making the payments.

I have gone both routes, and found that the consolidation program was not doing me any good, as the consolidation company was sending out payments without getting the creditor to agree to a payments proposal, and I ended up getting a complaint for a judgment filed against me.

I decided to try the settlement route again, and like the fact that the monthly payments go in an account that I set up and make deposits to, I am not sending a big payment to a settlement company.

Whichever route you choose, definitely check out the company with the BBB, Dept of Finance in your state and the company's, look them up on ripoff report, etc.