what's the difference beetwen debt consolidation and settlement?

If you have multiple debts, you can consolidate them and make one single payment to pay off debt while a settlement/ law firm works with your creditors t lower your payoff amount sya by 40 -60 % by cutting principal balance and reducing interest

Debt Consolidation is a strategy sometimes used by consumers to better manage their debt problems. Rather than paying off several separate bills each month, a consumer consolidates his or her debts with a financial institution that will arrange for one lower monthly payment extending over a period of time.
Debt Consolidation Comprises of two types:

1) Debt Management- All your unsecured debt will be consolidated into one single account with one payment to be made each month. Your creditors will be contacted and try to negotiate on your Interest Rate which drastically reduces down the monthly payment, but the principal debt amount remains intact.This program have a neutral effect on the credit sore.

2) Debt Settlement- All your unsecured debt will be consolidated into one single account with one payment to be made each month. Your creditors will be contacted and try to negotiate on your Interest Rate and the Principal Debt Amount try to waive all your late fees and the over limit fees. Your account remains delinquent in the program so there is negative effect on your credit score.

[QUOTE=Austin Butler;694693]Debt Consolidation is a strategy sometimes used by consumers to better manage their debt problems. Rather than paying off several separate bills each month, a consumer consolidates his or her debts with a financial institution that will arrange for one lower monthly payment extending over a period of time.
Debt Consolidation Comprises of two types:

1) Debt Management- All your unsecured debt will be consolidated into one single account with one payment to be made each month. Your creditors will be contacted and try to negotiate on your Interest Rate which drastically reduces down the monthly payment, but the principal debt amount remains intact.This program have a neutral effect on the credit sore.

2) Debt Settlement- All your unsecured debt will be consolidated into one single account with one payment to be made each month. Your creditors will be contacted and try to negotiate on your Interest Rate and the Principal Debt Amount try to waive all your late fees and the over limit fees. Your account remains delinquent in the program so there is negative effect on your credit score.

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