Debt Consolidation Vs Debt Settlement
Debt Settlement :
It is a method by which you and your creditor agree that you’ll only pay a portion of what you owe and call it even.Debt Consolidation :It is a method by which you lump all your debts together with a 3rd party service and then pay them monthly until it’s paid off.
Debt Settlement :
- 40% to 80% reduction of original owed amount.
- “settled” or “settled in full” or “paid in settlement” is marked as debt.
- It takes 2 to 3 years to get freedom from debt.
- interest savings is huge amount.
Debt Consolidation:
- Reduction in interest accrued, and possibly the interest rate.
- One payment to a debt consolidation loan compared to several.
- Freedom from debt in 3 to 5 years.
- Credit score not affected long term.
- All debts shown as “paid full” as they are satisfied.
