difference between debt settlement co. and consolidation

hi susy! you are not the only one who have to face this confusion. as far as i know, debt consolidation combines all your multiple debts into one and you need to make one single payment at the end of the month. in debt settlement, you do not need to make monthly payments at the end of each month. rather you do not make payments for five to six months at a stretch, and save the money. at the end of the stipulated time period, you make one payment in a lump sum. in both the methods, the amount you owe is reduced considerably, after a negotiation with your creditors. however, in debt settlement, your credit score may take a dip in the months when you are not making any payments. but once you pay up it improves with time.