Difference between debt elimination and debt consolidation

Hi efreeman84

To explain your query, I will exemplify with one credit card account owing $5,000. If you make an agreement with your creditor to settle the amount for $2,000 instead of $5,000 in full, this will be considered as a debt negotiation or a debt elimination plan.

The firms doing debt elimination will also identify themselves with a host of other names such as debt management, debt reduction, debt relief, debt workout, debt settlement etc. these types of firms can also work on the debt consolidation program to help people in solving in their debt problems.

Debt consolidation is a reorganization of the payment plan with the help of your counselor. He negotiates with your creditors and arranges a repayment in easy monthly installments at a lower rate of interest.

To understand these two avenues better, please read the following page given below.

http://forums.debtcc.com/forums/comparison.html