Debt settlement and Debt consolidation are a part of the debt program run by the debt management companies. Customers in various debt situations visit debt counseling agencies to get relief from the current debt situation.
Debt settlement and Debt consolidation are a part of the debt program run by the debt management companies. Customers in various debt situations visit debt counseling agencies to get relief from the current debt situation. The counselors are usually trained to handle tender financial situation of the customers. The customer is made aware of how to handle his budget and finances in the current situation. The customer is made to evaluate his current financial situation in order to determine if settlement or consolidation will help him come out of the current debt.
Debt consolidation: It is the program taken up for the customers with multiple debts. The customer is waging a war against different creditors and making multi cheque payments on the monthly basis. The consolidation company negotiates with each debtor and pulls down the debt bill by 40-60%. All late payment charges and interest charges are forgone and minimum rate of interest is negotiated with the creditors for payment. The consolidation company takes charge of payments to be made to all the creditors. The customer makes one single payment to the consolidation company and relies on them to handle all the creditors payments. The services are availed at a particular cost.
Debt settlement : While consolidation is for multiple debts, settlements is for a single debt. The negotiation process is held by the settlement company to bring down the debt bill and interest rate of payment.
Both consolidation and settlement have an adverse affect on the credit rating of the customer. By making regular payments the customer puts it back in the re-building phase. It is best advised to take help of debt consultant to evaluate one's debt situation and get the best suited advice for it.
If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt settlement companies and increasing your chances of eliminating your debt.
FreeDebtSettlementAdvice.com is one of the largest and most respected debt relief networks on the marketplace today. To find a debt settlement company through FreeDebtSettlementAdvice.com check out the following link:
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