How to Find Out if Debt Settlement is the Right Solution for You
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Consumers are often confused by the different options available to deal with crushing debt. The two most popular solutions are Debt Consolidation and Debt Settlement, each very different with distinct benefits and drawbacks. Deciding which solution is better for your own situation will require an understanding of your circumstances and financial goals.
When most consumers think of Debt Consolidation, they are actually referring to Consumer Credit Counseling (CCCS). A CCCS type plan is not a consolidation loan for you to pay off high balance credit cards, however many consumers identify CCCS companies as Debt Consolidation because they will consolidate all of your individual payments to creditors into one monthly payment to them. The goal of a Consumer Credit Counseling company is to reduce your interest rates and help you to pay off all of your debt within 5 to 7 years.
Debt Settlement is a more aggressive approach to getting out of debt. With Debt Settlement you actually negotiate the principle balance down, not the interest rates. The result is a significant savings on what you owe, typically 50%. Also if you are a qualified candidate for a Debt Settlement Program, you should be out of debt completely in about 2 years.
Click on the graphic upper right to view a short video of Financial Consultant Damon Day explaining the pros and cons of debt settlement, you can make the right choice.
Filed under: debt settlement
