HOW DOES DEBT SETTLEMENT COMPARE TO DEBT CONSOLIDATION AND CONSUMER CREDIT COUNSELING?
Under Debt Settlement we negotiate with your creditors to settle your debt for amounts significantly less than what you owe; typically we can settle your debts by 50 – 60% and in many cases even more. We have saved our clients thousands of dollars in debt principle AND interest, providing them the opportunity to pay-off their debt faster. One of the challenges with Debt Consolidation is that it involves QUUALIFYING a NEW loan; generally it is difficult for individuals already in debt, or for those who have poor credit, to qualify for a new loan. Also, with Debt Consolidation you are still responsible for the entire amount of your existing debts. Consumer Credit Counseling agencies who, for an 8 – 15% fee paid by the lenders, can sometimes lengthen the term of your debt and so reduce some of your interest; however, your outstanding debt principle IS NOT reduced. Additionally, this method is typically a longer-term approach to debt resolution, taking 5 to 12 years compared to Debt Settle
