What is the difference between debt settlement and debt consolidation?
There are a lot of debt settlement programs which are affordable today. However, debt consolidation is a really time-tested program that can occur to be very helpful for people struggling with multiple credit card bills and still can’t manage them properly. If you get a lot of bills on your credit card and have no ability to cover them on time, it’s an appropriate time to try credit card debt solution in order to prevent such things from getting out of your control. Credit card debt consolidation is an option that will help you to merge your multiple bills into a single monthly payment. In fact debt consolidators will communicate with your debt collectors or creditors to negotiate as for the lower interest rates and affordable payment plan.
There are two types of debt consolidation: secured and unsecured debt consolidation. With secured debt consolidation, a consumer gets a loan that is collateralized by a home or vehicle to pay off their credit card debt, and then pays back the loan at lower interest since it is secured by property. With an unsecured debt consolidation loan, a consumer gets a loan from a bank, presumably at a marginally lower interest rate, to pay off their credit card debt. Debt Settlement does not involve lending, but rather negotiating with credit card companies and other creditors to reduce the amount you owe.
