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What is the difference between debt consolidation and debt settlement?

April 26, 2017debt consolidation Debt Settlement

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What is the difference between debt consolidation and debt settlement?

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Debt settlement and debt consolidation are similar in that they both pay off your current creditors and simplify your unsecured debt into one monthly payment. The key difference is that debt consolidation pays off your current credit card debt in full. With debt settlement, creditors are negotiated with to get a lower balance. This will be helpful for severely charged off accounts. If you can afford, debt consolidation is a much better financial option for your credit.