The following article covers a topic that has recently moved to center stage--at least it seems that way. If you've been thinking you need to know more about it, here's your opportunity.
When a person is faced with debt problems where should they turn? Should the person invest in debt consolidation? Or should the person invest in debt settlement? What are the differences? Which is better for your own specific financial situation?
What is a consolidation plan?
A consolidation plan is a service offered by a company to help customers with financial problems such as many different overdue debts all requiring payments at the same time each month. A consolidation plan will take these many different debts and help its clients by giving a loan to pay off all the overdue debts, turning them into one debt, with one low monthly payment.
What is a settlement?
It seems like new information is discovered about something every day. And the topic of debt consolidation agencies is no exception. Keep reading to get more fresh news about debt consolidation agencies.
When a person is faced with debt problems where should they turn? Should the person invest in debt consolidation? Or should the person invest in debt settlement? What are the differences? Which is better for your own specific financial situation?
What is a consolidation plan?
A consolidation plan is a service offered by a company to help customers with financial problems such as many different overdue debts all requiring payments at the same time each month. A consolidation plan will take these many different debts and help its clients by giving a loan to pay off all the overdue debts, turning them into one debt, with one low monthly payment.
What is a settlement?
It seems like new information is discovered about something every day. And the topic of debt consolidation agencies is no exception. Keep reading to get more fresh news about debt consolidation agencies.
A debt settlement solution is when a client and the company in which the client owes money to get together and compromise the total amount of debt due. If the client is faced with bankruptcy the company will reduce the debt by a specific percentage to help the client pay the debt off.
What is the difference between a debt settlement and a consolidation loan?
A consolidation plan is a loan which helps make multiple debts easier to pay off by turning them into one single debt. A consolidation plan cannot be like a settlement because a settlement is between one single debt, and the account holder of that debt. If a client tried to receive consolidation on a single debt they would risk not changing that debt status at all, because that single debt may have the same payoff requirements as it would alone with a consolidation agency.
A settlement plan is also in no way a consolidation plan, but settlement methods can be used in consolidation plans. What I mean by this is that when companies give a loan to pay off many different debts in consolidation, they could use the settlement method to get reductions on the debts to make the payoff cheaper.
NOTE: there are reputable debt consolidation companies in the market, so you must research and compare to find the one that meets your specific financial situation. A trusted and experienced debt counselor can help you saving time and money by getting better results in a shorter span.
Sometimes it's tough to sort out all the details related to this subject, but I'm positive you'll have no trouble making sense of the information presented above.
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1 comment:
Thanks for this post! Quite helpful. You really differentiate both Debt Consolidation Agencies and Debt settlement companies. I didn't know at first their difference but thanks to your post I know now. Might as well check my site about Phen375 phen375
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