Debt Settlement vs. Debt Consolidation

When debt becomes overwhelming, it takes the right kind of strategy to overcome it. There are a few different routes one can take to work towards eliminating debt in your life and each one has its advantages depending on the circumstances. Understanding these different options can help you apply them to your own life and financial situation. The two most common ways to eliminate debt are debt settlement and debt consolidation.

Debt settlement is what occurs when the amount of debt with a respective company is renotigated and a smaller amount is decided upon in order to mark the debt as being paid in full. Although there are consequences to this and companies are not always willing to negotiate, this is a worthwhile strategy if you have a particularly large loan that you are having difficulty paying off. When pursuing a debt settlement, there are usually legal hoops to jump through, so it is recommended to work with professionals to help you through this.

Debt consolidation is the pooling of many different sources of debt together in order to make it so that you only have to make a single payment rather than multiple to the various companies the debts are owed to. This is a better strategy if you have many different sources of debt because it takes stress off trying to accommodate different companies. It can also sometimes lead to less payments in interest overall. Debt consolidation is always done through a separate agency that can manage the various sources of debt for you.

Whether you are looking to pursue debt settlement or consolidation, we at Cain and Daniels would be happy to help guide you through the process and determine the best course of action for you. To learn more about how we can help you get and stay out of debt today, please feel free to call us any time at 855-780-1164.

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