Do you wanna know the difference between debt settlement and debt consolidation?
Let’s start with debt settlement.
Debt settlement is a program where you can settle your debts for less than what you owe.
How the process works is you enroll into a debt settlement program, they use their top negotiators to negotiate down your debts on your behalf so that way you can pay less.
Every debt settlement company is a little bit different, so make sure that you talk with your debt expert.
Do some comparisons to make sure it’s the right program for you.
Debt settlement could be very beneficial to people who are financial hardship due to a job loss, an unexpected medical bill, or maybe they just can’t afford to pay what they owe anymore.
In a debt settlement program, your credit may be impacted negatively.
However, under the FCRA, the Fair Credit Reporting Act, that your creditors have to report your accounts accurately, and that means every settlement we help you obtain will help your credit score go up.
Now, let’s go over debt consolidation.
Debt consolidation is when you take your old existing debt amounts that have high-interest payments and then you transfer the balances onto a bigger balance of a credit card or a loan with a lower interest rate to lower your monthly payments.
This is great if you wanna pay off your debts over a certain amount of time and you’re able to do so.
The dangers is a lotta people just raise their standard of living artificially through debt because now they have their old credit cards and loans that have zero balances and then they start using those as well, and then they end up with two payments and they’re in a worse situation than they were before.
If you would like more information on debt settlement or debt relief, visit us on our website at Alleviatefinancial.com.
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