When it comes to debt relief, there is no such thing as debt consolidation versus debt settlement. They are both debt relief methods that aid and benefit you. You just need to decide which one best suits your situation and needs. There are pros and cons of each and you need to determine which is the right option for you and your circumstances. Let’s break it down!
Debt settlement is the debt relief that does not involve any loan. It is almost impossible to maintain monthly payments on multiple accounts. Eventually you will exhaust all possible options and end up filing bankruptcy. You may not be able to refinance or transfer your accounts either. You basically can not exist without a debt settlement.
On the other hand debt consolidation is debt relief that involves a loan. You are given a new loan at the current amount owed on all of your accounts. The purpose is to payoff the old debt and then have only one loan to worry about.
So which is best? To figure that out you will need to look at each debt settlement method individually and determine how it will impact your credit score. The best choice might not be debt settlement because it could put your credit score in jeopardy and make it harder for you to re-establish your credit in the future.
But debt management is probably going to save you the most money over all other debt relief options. Debt management will allow you to save money by lowering the interest rate on your credit cards and it is possible that some fees can even be eliminated. It will also allow you to increase your credit line to a much larger extent. Debt management is also usually tax deductible. So you will be able to take advantage of saving any other tax advantages that you may be eligible for.
So if debt relief options that eliminate your debts are your preferred debt relief options it makes sense to go with debt settlement. It could save you the most money. It is the fast track to financial recovery and it allows you to reestablish your credit score and save money. Both of these factors will help you rebuild your life and get back on track financially.
But if your debts are so bad and your credit is in such poor, then it would probably be best to start with debt consolidation. Debt consolidation is a debt relief in a way. It is a method of combining all of your bills into one low monthly payment. Some debt consolidation companies offer the ability to negotiate with creditors and reduce balances and interest rates. Debt consolidation companies usually charge a fee, but there are also debt relief non-profit companies that can assist you with this process too.
In summary, debt relief can mean many different things, but debt consolidation is probably the easiest. You may want to consider a debt relief method such as debt settlement or debt relief using a debt consolidation or debt validation program. You can learn more about debt relief strategies such as debt settlement and debt validation program at Optimal Debt Solutions visit their website at https://www.newmexicodebtreliefhelp.com/.