Debt Settlement v. Debt Consolidation

If you are looking for a way to get a handle on your debts, you may want to consider debt settlement or debt consolidation as an option for you.

Debt Settlement is the process of negotiating with your creditors to reduce the amount of debt that you currently owe. For instance, say you owe $20,000 to one of your creditors.  Through debt settlement you may be able to negotiate reducing your debt anywhere from 30 to 70 percent.  If you are able to reduce your debts by say, 40 percent, you now only have to pay $12,000 instead of $20,000.

Seems too good to be true right? The reason some creditors agree to debt settlement is because they'd rather recover some of their money than risk the chance of not getting repaid at all.

Debt Consolidation does not reduce the amount of debt that you owe the same way debt settlement does, but rather consolidates all of your unpaid debts into one loan.  Instead of having to repay multiple creditors, you now just have to focus on paying back one loan.  This is a viable option for anyone with debt from multiple creditors.

Struggling to pay off your debts? If so, you should consider speaking with an experienced bankruptcy attorney about taking advantage of a debt settlement or debt consolidation program. You'll be glad you did.

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