Compared To Debt Consolidation

There are two types of debt consolidation. One type of debt consolidation is a debt consolidation plan that you would get through a credit counseling agency, which normally helps bring interest rates from the 20% range to about 8-10% on average. In comparison, debt settlement is a program where the amount paid back is the lowest negotiated amounts off the balances, so it is designed to save you much more money than just adjusting interest rates. The second type of debt consolidation is a loan, either secured or unsecured, where your debts are combined. In this, you are paying a new loan, often with the loan origination fees incorporated as well as interest. In the case of a loan where the collateral for the loan was property or something you own, the risk is that the item can be repossessed if the loan isn’t made on time. In comparison, by negotiating on your balances, debt negotiation is designed to save you as much money as possible without linking the debts to your property. With a debt settlement program, the goal is to pay back a reduced amount and resolve your debts as quickly as possible based on the funds available.

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