What is the difference with Debt Settlement and Debt Consolidation

Although many individuals think that debt settlement and debt consolidation are one and the same, they are not. They are two different forms of financial help. And both can help individuals that are struggling with paying their debt.  than they can repay. \

A debt settlement program is where an individual negotiates with creditors to settle their debt for less than they owe. This method can be used to settle a large debt that they may have with a creditor, or it also can be to deal with multiple creditors.

A debt consolidation program is where an individual tries to combine debts from several creditors. To combine them, they would typically take out a single loan to pay all their debts. This would be done to reduce their interest rate and a lower monthly payment.

Whichever form you decide to use, it is always best to look at the pros and cons to make the best decision for you. For instance, how long will it take to get out of debt, how will it effort my credit score, and will it save you money.

Both forms will help individuals manage their debt, and when used properly, either can help you get out of debt sooner and save money.

Debt settlement normally can take 2-3 years, which could mean 24-36 months of late fees and penalties added to the amount you owe.

Debt consolidation can take 2-5 years in a debt consolidation program before you finish paying off your debts.

Still do not know which is better for you. Let Credit Services of America help you.  We offer a free consultation and 50% off our credit repair.


*Individual results may vary. Please call for details and to discuss your own individual,