Is debt settlement / debt negotiation similar to debt consolidation?
No. Debt consolidation means that a person takes out a loan to pay off their existing debts, thus consolidating their existing debts into one new debt. The goal of debt consolidation is to use a lower interest loan to pay off higher interest debt. Debt consolidation does not result in any debt relief or debt forgiveness. However, in the long run debt consolidation may save a person some money with respect to the interest paid on the outstanding debt balance. However, the full balance plus interest will be paid.
