When there is mounting debt, there are multiple options to help reduce some of the debt and lower the payment. Two common choices are credit card debt consolidation and credit card debt settlement. Though the two are similar, there are some extreme differences between the two of them. They are each used for credit card debt, but the purpose and reason to choose one over another are different.
First, credit card consolidation can be used when the person still has good credit. Credit card debt consolidation is when all the debt is combined together into one loan. The loan has one interest rate and thus the payment may be lower as well then. There is also only one payments, which means an easier time keeping track of the loan and the payment that is being made. All the debt is moved from where it currently is to a new location. There is no reduction in the debt, there is no elimination of any fees, interest or charges. A consumer will pay the entire amount that is owed back to the creditors. There will be interest on this payment as well. This option can be a good choice for a consumer that has never been behind on their payments, has had no life changes or job changes that make making the payment difficult and can afford a payment that is only slightly less than what they were paying before. Again, the consumer has to still have good credit to get a new loan to do credit card debt consolidation.
Debt settlement on the other hand, works better for people that have already fallen drastically behind in their payments or know that they will fall behind. Debt settlement works to reduce and eliminate 50% or more of the consumers debt that is owed. The debt settlement program removes all fees, interest and charges that have been tacked on to the original balance of the credit card and than cuts that amount in at least half as well. So that there will be an extremely lower payment that the consumer can actually make each month. A debt settlement company works for the consumer on their behalf and they are the ones that create the repayment plan, not the creditors. This option is best when there is no longer good credit because of late payments and no payments being made any longer. It is also best for debtors that can no longer make their payments each month and needs a drastic reduction in their monthly payment. The new payment has no interest added to it each month either. It is a flat payment that is made to the creditors to settle the debt.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.First, credit card consolidation can be used when the person still has good credit. Credit card debt consolidation is when all the debt is combined together into one loan. The loan has one interest rate and thus the payment may be lower as well then. There is also only one payments, which means an easier time keeping track of the loan and the payment that is being made. All the debt is moved from where it currently is to a new location. There is no reduction in the debt, there is no elimination of any fees, interest or charges. A consumer will pay the entire amount that is owed back to the creditors. There will be interest on this payment as well. This option can be a good choice for a consumer that has never been behind on their payments, has had no life changes or job changes that make making the payment difficult and can afford a payment that is only slightly less than what they were paying before. Again, the consumer has to still have good credit to get a new loan to do credit card debt consolidation.
Debt settlement on the other hand, works better for people that have already fallen drastically behind in their payments or know that they will fall behind. Debt settlement works to reduce and eliminate 50% or more of the consumers debt that is owed. The debt settlement program removes all fees, interest and charges that have been tacked on to the original balance of the credit card and than cuts that amount in at least half as well. So that there will be an extremely lower payment that the consumer can actually make each month. A debt settlement company works for the consumer on their behalf and they are the ones that create the repayment plan, not the creditors. This option is best when there is no longer good credit because of late payments and no payments being made any longer. It is also best for debtors that can no longer make their payments each month and needs a drastic reduction in their monthly payment. The new payment has no interest added to it each month either. It is a flat payment that is made to the creditors to settle the debt.
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