How is debt settlement different than debt consolidation?
Debt settlement and debt consolidation may sound similar, but they are completely opposite from one another. In most cases, debt settlement reduces your debt balance by approximately 40%-60%, which occurs through Preferred Credits negotiations with creditors with whom we have established trusting relationships. Debt consolidation, on the other hand, is a program that merges your entire outstanding debt into a single lump sum, and secures the total amount of your debt with one of your assets that has great value, such as your home. Essentially, debt consolidation allows you more time to payback your debt, but with the potential for risky consequences, for instance, possibly losing your home if you can’t pay off the debt. Conversely, debt settlement has no hidden scams, and takes about 3 years to complete. Furthermore, because you payback a percent of the balance owed at the time of settlement, monthly payments are lower with debt settlement.
Debt settlement and debt consolidation may sound similar, but they are completely opposite from one another. In most cases, debt settlement reduces your debt balance by approximately 40%-60%, which occurs through Debt Counseling Bureau’s negotiations with creditors with whom we have established trusting relationships. Debt consolidation, on the other hand, is a program that merges your entire outstanding debt into a single lump sum, and secures the total amount of your debt with one of your assets that has great value, such as your home. Essentially, debt consolidation allows you more time to payback your debt, but with the potential for risky consequences, for instance, possibly losing your home if you can’t pay off the debt. Conversely, debt settlement has no hidden scams, and takes about 3 years to complete. Furthermore, because you payback a percent of the balance owed at the time of settlement, monthly payments are lower with debt settlement.
