Is debt settlement the same as debt consolidation or consumer credit counseling?
No. With credit counseling, you must pay back all of your debt plus interest. While they will reduce the interest rates from say 20% to about 8 or 9%, you still pay interest. With consumer credit counseling, you have to pay back 100% of what you owe. With debt negotiation, you pay back a fraction of what you owe. Also, Consumer Credit Counselors are paid by the creditors so they are really working for them and not you. With debt negotiation, we work only for you, not both sides. Credit counseling can be a good solution if you have less than about $40,000 of debt and the plan they propose fits your budget and is less than 36 months long. In most cases, consumer credit counseling plans are 4-6 years, and that is too long, and it damages your credit further.
No. With credit counseling, you must pay back all of your debt plus interest. With debt negotiation, you pay back a fraction of what you owe. Also, consumer credit counselors are paid by the creditors so they are really working for them and not you. With debt negotiation, we work only for you, not both sides. Debt consolidation generally takes your unsecured debt and rolls it into a secured loan, usually secured by your home. That means you still have the debt and are still paying interest, you’re just paying it to different creditors. Debt settlement eliminates your debt.
Related Questions
- What is the difference between The Debt Settlement Company and consumer credit counseling, or debt consolidation companies?
- What is the difference between Debt settlement and Debt consolidation (consumer credit counseling services)?
- How is debt settlement different from Debt Consolidation and Consumer Credit Counseling?
