Is debt consolidation and debt settlement the same thing?
No, absolutely not! In debt consolidation program all of your current debts are rolled into one new debt, which is often either at a much higher interest rate or guaranteed by your home. When you secure a loan using your home, you convert unsecured debt into secured debt, giving up hard earned equity in your home. These programs typically only create more debt instead of moving you towards debt relief. Their goal is very different, and often without the client’s knowledge, debt consolidators are paid by both the client and by lenders who make or service the loan.
