Is debt consolidation the same as debt settlement?
NO. Debt consolidation vs debt settlement services is a completely different method of a debt solution program to get out of debt. Debt consolidation is where the company works for your creditors to negotiate your interest rate and combine your minimum payment into one monthly payment. The debt consolidation company is responsible to disburse the payment to your creditors known as company to consolidate debt. Using debt consolidation, you will be paying the principal balance plus a reduced interest rate. This program usually takes anywhere from 5-7 years to complete. This is 3rd-party intervention, and it can be viewed by other creditors as Chapter 13 bankruptcy. Debt consolidation will appear on your credit report to show you are enrolled in a debt management and/or Counsumer Credit Counseling Service (CCCS) and that your debt is being paid by a 3rd party. However, debt consolidation companies are under investigation with the Federal Trade Commission because they claim to be (501c) no
