Debt settlement of debt consolidation

If you own a home and have equity you can do a debt consolidation loan. If you go thru a Consumer Counciling firm your credit will be damaged so you are better off choosing a debt settlement firm. I was in a similar situation and after research chose a company called freestar financial

It seems that you're finding it tough to remain current on your account. If I were you then I would have selected debt consolidation. It would waive late payment charges, decrease interest rate and consolidate multiple credit card debts. This program will actually help your credit score to increase.

Debt Settlement is considered as a program for avoiding bankruptcy. This program can decrease your debt by 40 to 60% but will negatively affect your score severely.

You can also browse through the different debt solution options available to you: -
Debt Solutions - 3 steps and 6 ways to do it

Debt consolidation is nothing but another loan which is used to settle all your other loans so that you will have only a single repayment every month, whereas in debt settlement your debt amount gets reduced by way of negotiation. I can say from my experience that Freedom Debt Relief works better in debt negotiation with a goal of lowering debt levels. Their debt settlement program helped me to lower my monthly payment and also reduced my total debt.

once again this is a personal choice. YOu must first research the difference between consolidation and settlement and what could and can happen and if you are comfortable with it.

I myself would not advise a home equity loan or second mortage because know you have just put your home in danger for unsecured debt. If you never pay that unsecured debt the worst that can happen is a judgement, and bad credit. I try to steer people from this because this is alot of why people are loosing thier homes. Its so easy to do that, the next thing you know you have done it 3 times, and doing it again now you owe more than your house is worth, Dont put your home in jeopordy.

debt consolidation or debt settlement is your best choices if you ask me BK is always the last resort and worse in the long run for your credit. consolidation is best for your credit but as the above post you are just making one payment illiminating % and late fees. May take awhile to pay it off.

settlement is fast,(you will most likely stop paying these debts and start saving) but will hurt your credit temporarily until debt is paid but easily repaired, But one must consider the possible judgements, and harrassing calls, and be able to put as much money back as you possibly can so that when a deal is made they want to be paid asap. So you must have the funds available.

Read up know the difference then figure out what is the best option for you

If you can pay more than your minimums, 5 years can happen. Otherwise if you're only paying your minimum payments on your cards, 5 years is impossible; it will be more in the arena of 15-20 years. Settlement will get you out within that time period but can be damaging to your credit. Just be sure you do your due diligence in any program decide to pursue.