Debt Consolidation - Is Debt Settlement Better Than Consolidation?Consumers are very desperate to get out of their debt situation and are often lured by attractive offers by several fraud companies.
However, this is important that a consumer understands the difference between both the options and select one that suits best to his or her financial situation. Even Better Business Bureau (BBB) advises consumers to take due considerations of these differences before trying to get help from a company in managing their debt. Else they could further worsen their financial scenario instead of eliminating their debt. A debt consolidation is a type of contract where the creditor agrees to accept a reduced payment till then the whole debt amount is paid off. On the other hand, a debt settlement is an agreement where the whole debt amount is paid off in a single lump sum amount. In this case, a debtor usually enjoys a reduction between 10% and 50%, depending upon his or her debt history. People have very little idea that they could eliminate their debt without filing for bankruptcy. There are debt consolidation companies that will help people to get rid of their debt, so quickly and so effectively. The debt consolidation companies suggest ways to lower the interest rates and thus keep the monthly payment within the affordability. In some cases, a settlement program may prove a better option than a consolidation program, particularly when it seems difficult to make payments every month. In a settlement, your creditors offer you a reduced amount that you will be comfortable in paying back. Of course you need to convince them that you are not in a position of paying off the entire debt amount. When they agree, you will get the opportunity to eliminate your debt. In debt consolidation, a debtor is allowed to make one lower monthly payment to the credit company until the entire debt amount is paid off. Here, a debtor is spared from making many payments to several credit companies. The consolidation thus helps the monthly bills to become more manageable and affordable. This way by paying some amount every month, you will be able to pay off your debt in the long run. If you are over $10,000 in unsecured debt it would be wise to contact a debt settlement company while conditions are so favorable. A legitimate debt settlement company will be able to eliminate 60% of your unsecured debt on average. There are now online services that will compare debt settlement companies for consumers and provide a top performing company in their area. To locate a top performing debt settlement company in your area check out the link below. Free Debt Advice (http://www.freedebtsettlementsolutions.com/ # # # FreeDebtSettlementSolutions is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal. http://www.freedebtsettlementsolutions.com contact us for free debt advice = 8886916918 End
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