Debt settlement and debt consolidation are two of several ways to resolve your financial difficulty. Although both aim to help you get rid of your debts, they work differently.
Debt settlement or debt elimination is the quickest way of settling debt (other than bankruptcy, of course, though this is a misconception because bankruptcy is not an easy way out).
Debt settlement is the method of negotiating with your credit card companies in order to greatly reduce the total balance of your debt . It is important for you to understand that drastically reducing the balance of your debt and not just reducing your interest rate, is the secret to getting out of debt fast.
With debt settlement, your monthly payment can be reduced up to 60%.Your total debt can be paid off much faster. You may be debt free in about 12-48 months.
And debt consolidation on the other hand, is combining all your debt into one account. This could be done through a secured or unsecured loan.
Some people who are having trouble settling their enormous debts consolidate all their credit cards into one card with the lowest rate. If you decide to go this route, make sure you read the fine print. There may be unfavorable terms.
Consolidating your debt can help you settle your debts but it will take you longer than debt settlement. And it is a tedious process you have to undertake especially if you have low credit rating. The pay-off time and total cost is the big difference of debt settlement vs debt consolidation .
Due to the economy, It is hard to find a creditor that is willing to trust you or work with you in settling your debts. In case you find one, they may charge you with a high interest rate.
Though you will pay this loan with a low monthly payment that will be beneficial to you, you will be paying it for a longer period. The interest that the loan will accumulate may double up your principal balance.
But if you have good credit rating and debt consolidation is your choice of debt settlement, take out a loan with a low-interest rate, and a low monthly payment. Focus your search for a lender at a bank, not a mortgage broker. Interest rates and closing costs are typically much lower with a bank.
Debt Free Solutions is a debt consulting company located in Long Beach, CA. We have been in business for 10 years. We assist Americans across the U.S. to eliminate excessive credit card and other unsecured debt.
We utilize various programs and strategies to aid them in dissolving their debt in the quickest, safest, and most efficient method possible. We also analyze the risk factor. We structure our programs to drastically minimize the risk that is inevitable with all debt elimination programs.
We offer our clients much more than a debt settlement company does. The vast majority of debt negotiation companies simply settle your debts on your behalf with your creditors- nothing more.
On the other hand, we provide free services to significantly help to minimize the risks that are involved in negotiating with your creditors.
First, we offer a free, no-risk 10 day trial service. During our free trial, we negotiate with your creditors on your behalf to lower your interest rates. Also, we research to see if you have any old debts that you are not legally liable to repay. If, for any reason, you are not completely satisfied, you simply walk away. No commitments. No contracts.
Next, we provide a comprehensive credit repair service to all our clients. This is a $795 service that is absolutely free!
Also, we offer free attorney consultation (a maximum of five sessions) in case one or more of your creditors makes any threats.
Last, we provide a written guarantee that our clients’ creditors will settle for an average of 50% or more for all of the debts they attempt to negotiate.
Our services are competitively priced- and include the above free services!
Joseph Hernandez
CEO
Debt Free Solutions
www.debtfreesolutions.mobi
(800) 668-8090
It’s critical that you choose the best way to get out of debt. You need to weigh the pros and cons of each program to determine which program is best. Choosing the wrong program may cause a financial disaster!