Differences Between Debt Consolidation and Settlement of Debt
By Hector Milla

When looking into whether you should invest in either debt consolidation, or a general settlement of debt you need to understand exactly what each plan is and what the differences are which they provide.

What is debt consolidation?

Consolidation is where a independent individual or family who is under a significant amount of debt with multiple companies, sits down with a consolidator and makes an agreement as to where the consolidating company will pay off multiple debts, in return requesting the individual to sign an agreement to pay back this total amount paid off on your debts to the debt consolidator.

To put this into simpler terms a consolidation is where a company offers customers the opportunity to turn many different separate debts into one debt, with one company. Usually the consolidation service will require you to sign over a piece of collateral in equal or greater value to the debt which is taken out with the consolidation loan. Some companies will also allow a loan without collateral, but the interest rates will be defaulted to a much higher amount.

What is a settlement of debt?

Debt settlement is where instead of a plan to create a monthly payment with another company, you are making a deal with a company when faced with bankruptcy to receive a discount on a total debt as long as you can pay off this discounted debt in full. A debt settlement allows a person faced with bankruptcy some leniency to avoid the inevitable. This helps you from having to claim, and saves the company from losing out on the total debt all together.

So what is the difference between debt consolidation and a settlement of debt?

Debt consolidation transfers multiple debts into one single debt with a different company. While debt settlement is a payment in full to an owed company at a discounted total cost. Consolidation saves you from stacking interest rates and fees, while settlement saves you from the total debt altogether, if you can afford it.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meets your specific financial situation. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Hector Milla runs the Best Debt Consolidation Service website - where you can see his best rated debt consolidation service recommendation.

Visit for further information and read our full review of the best debt consolidation company, plus articles and video training about how to get the most of your debt settlement process.

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Credit Repair - The Easy Way, Yourself!
By Clay Bowden

Did you know that the FCRA (Fair Credit Reporting Act), allows you to get a FREE copy of your credit report 1 time a year?

Congress passed this law to help consumers help themselves. They want you to get a copy of your credit report to verify its validity. They want you to have rights to disagree with what is being reported.' and they want you to have an outlet to get those items fixed.

Now there are a ton of credit repair agencies out there who will make you promises and tell you what they want you to hear. They will charge you thousands of dollars every month to do what you can do yourself! Yep, that's right! Everything they can do, you can do yourself. It may take a little bit of time, but to save yourself thousands of dollars and to have the ability to dispute items on your credit report that are incorrect, reported wrong, or just not yours. Is it worth it?

Want to know how?

Many have used a simple set of letters, 4 to be exact, to raise their credit score from 610 to 745 in a little over 30 days. To learn this information, Most of the people I spoke with invested about 20 hours doing research, writing these letters, and sending the letters.

Want to lean more?

Check out the Credit Repair Blog. If you want the letters many have used, 100% free to start fixing your credit report, visit http://www.epicinternetventures.com.

Article Source: http://EzineArticles.com/?expert=Clay_Bowden
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