debt settlement vs. debt consolidation

Welcome to the community fmad33 :)

With debt settlement there is a high chance of a negative credit rating. It's not a perfect choice. Your credit rating will be hurt in the short run. I think debt consolidation is much better than debt settlement. But it all depends on situation.

In debt settlement you will be able to reduce your debt amount and become debt free in a short time, whereas if you go for debt consolidation you will have to pay the whole amount back. Even though your credit score gets affected a little in debt settlement you will be debt free and can increase your score again.

Since you're getting settlements already your score is already in the tank. get out of debt as fast as you can which in my opinion for someone in your position is settlement. The faster you get out of debt, the faster you can start accumulating wealth, savings, nest-egg, etc. Credit is resilient and will bounce back.

I have entered a debt settlement with Allegro Law Firm. I was not clear on the amount of fees charged at 16% or that the fees came out of the first 12 payments. This means that my creditors will not get a dime for a long time. I am concerned that I have made a bad decision but with the aamount of debt we have we need help.