Is debt reduction program different from debt consolidation?
Date: Tue, 03/22/2005 - 10:43
How far is debt reduction program different from debt consolidation? Also, if I choose for a debt reduction program, do I have to include all my debts into the program or can I choose from my debts, which one needs to get resolved.
Just to have a general idea, I wish to be answered to this query
Roxette
Just to have a general idea, I wish to be answered to this query
Roxette
Theory and practical
Quote:
How far is debt reduction program different from debt consolidation? |
Theoretically both are different but practically both come under same package. Under Debt Reduction one person negotiates and reduces the total principal debt (also reduces apr and late fees) while under debt consolidation one consolidates to a single account for easy maintenance. Debt Consolidation allows you to pay the debt with higher interest faster thus saving a significant amount.
Quote:
Also, if I choose for a debt reduction program, do I have to include all my debts into the program or can I choose from my debts, which one needs to get resolved. |
You can choose the ones you want.
Vikas
thanks
Vikas,
Thanks for the reply. Now, I have got a clearer idea between debt reduction and debt consolidation. Actually both of these terms serve the same purpose with slight differences, but they are named differently. So, what do you say....in times of need, what should one go for? Debt Consolidation or Debt Reduction.....? Because, what I gathered is that whatever is saved during debt reduction in the preliminary stage is the amount that actually is used when one has chosen to consolidate the debts in the time period. I guess....both incur same expenses...
Roxette