Firstly, there is a difference between debt settlement and debt consolidation.
Debt settlement: Making arrangement with creditors to reduce total debt owed, in return for paying off debt. In return the creditors agree to say you “settled in full”. This is usually done through a third party - a debt settlement company
Debt Consolidation: Moving various loans and debts into one big loan. Often this is done through remortgaging. This enables credit cards and other loans to be placed in one easy to manage account.
2 comments ↓
It really depends on your particular debt situation when trying to figure out which route would be better, debt consolidation or debt settlement.
[...] Debt settlement involves consolidating debt, but, also reducing the value of your total debt. A debt settlement company agrees to clear your debts but negotiates a reduction in the value. Your debts are cleared as “settled in full” rather than “paid in full” More detail: Debt settlement [...]
Leave a Comment