Debt Settlement vs. Debt Consolidation

Debt consolidation is the process in which an individuals debts are combined into one payment by virtue of consolidating creditors. Consolidation grew to be a major player in the world of debt relief but inherent flaws in the process have forced it to give way to other, more consumer friendly practices in recent years. While it is convenient to have only one payment per month instead of six or seven, often the interest rates are reduced only by a fraction, and the monthly fees charged through the consolidation process over the long haul wind up costing more than the original debt. Beware, there are many debt consolidation con artists who prey on the desperate by promising to ease your financial burden while simply taking your money and doing nothing to alleviate your situation.

A Better Way To Eliminate Debt

While debt consolidation may be the way to go for a select few, other more feasible methods have come into procedure that offer a reprieve from creditors that is suited to a wider variety of the populace. The most popular of these new options is debt settlement. Debt settlement allows you to repay the monies you owe at a radically reduced rate. This is accomplished by negotiations that guarantee the creditor at least some money toward what is owed them. Many times past due amounts are negotiated down to half or less of the original total debt. The reason is simple, creditors are fearful that the ones that owe them will file for bankruptcy, in which case they would see nothing. Through debt settlement they are assured of at least part of what is owed them and something is better than nothing.

Settle Your Debts Once And For All