Debt consolidation or settlement, which is better?

debt consolidation makes monthly payments at a lower interest rate to your creditors FOR YOU.

debt settlement does not make monthly payments for you. They accumulate your money and SETTLE with them at 50 % or less for you.

Your credit score will decrease while in the program, but will improve once out of the program. You are allowed to keep one credit card open while in the program and once your program is complete, you will quickly reestablish your credit because they will KNOW you have been paying on that one card on time. The company may suggest paying the balance off in full each month in order to get you a better credit score.

Yes, you will be able to purchase a home later.

And you will be able to get another credit card. But the purpose of the debt settlement program is to train you to no charge up debt without paying it off fully each month. You don't want to complete settlement program and go right back into a mess again. C/ what I mean?

debt consolidation and debt settlement have been nicely explained in the page below. Read them for a better understanding and how each one works. How much is the total amount of your debt? Settlement program is chosen especially if you have a huge debt and are unable to pay the minimum balance. This is the last option for those who are considering filing bankruptcy. Your credit improves after the accounts are paid off and the creditors report with the bureaus.

Consolidation program will be a better choice as your accounts remain current in the program. The interest rates are lowered down and most of the late payment fees are waived off. It depends upon your individual situation and the debt status before a program is found suitable for you.

http://www.debtconsolidationcare.com/debt-settlement.html

http://www.debtconsolidationcare.com/benefits.html