subject: Credit Card Debt Relief - How Debt Settlement Can Be Compared To Consolidation? [print this page] Credit Card Debt Relief - How Debt Settlement Can Be Compared To Consolidation?
As compared to filing bankruptcy or doing nothing, both debt settlement and credit card debt consolidation options are far better. These choices have their beneficial consequences and impressions too. So, a person who has to discharge from the debt, can avail one of these relief tools. You can get your debts eliminated through debt settlement procedure. This reduction can be up to 50% or even more. It depends upon your Settlement Company or lawyer. You can also negotiate with your creditor without the intervention of anyone else. This is not recommended because at this time of emotional tension and unstable financial situation, you may not be able to handle the circumstances and may not get appropriate reduction. Your credit card history will be effected little bit with settlement process because a creditor will make a note on its report that his money was not paid on full and was paid through settlement. This is indeed a little bit disturbing because it will create problems for you in future. You should carefully evaluate its after effects before engaging yourself in this routine option. Besides this problematic matter, debt negotiation is a better solution.
Consolidation can get your debts eliminated to some extent but you have to sacrifice by putting up your fixed property as security for getting another secured loan. This loan will be used to pay unsecured debts of credit card companies. After you have cleared your unsecured debts, you will be offered to pay the secured loan usually in below average or small installments. You will be charged little interest on loan and you will easily do the payments and get your property back. One thing that is hard to swallow is its time. It may take you years to get out of debts. Good thing is that you will not get any threatening calls from collectors. Your burden of payment will be less. With small interest rate you will save a lot of money.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.
