Debt settlement and Debt consolidation are a part of the debt program run by the debt management companies. Customers in various debt situations visit debt counseling agencies to get relief from the current debt situation.
Debt settlement and Debt consolidation are a part
of the debt program run by the debt management companies. Customers in
various debt situations visit debt counseling agencies to get relief
from the current debt situation. The counselors are usually trained to
handle tender financial situation of the customers. The customer is
made aware of how to handle his budget and finances in the current
situation. The customer is made to evaluate his current financial
situation in order to determine if settlement or consolidation will
help him come out of the current debt.
Debt consolidation: It is
the program taken up for the customers with multiple debts. The
customer is waging a war against different creditors and making multi
cheque payments on the monthly basis. The consolidation company
negotiates with each debtor and pulls down the debt bill by 40-60%. All
late payment charges and interest charges are forgone and minimum rate
of interest is negotiated with the creditors for payment. The
consolidation company takes charge of payments to be made to all the
creditors. The customer makes one single payment to the consolidation
company and relies on them to handle all the creditors payments. The
services are availed at a particular cost.
Debt settlement :
While consolidation is for multiple debts, settlements is for a single
debt. The negotiation process is held by the settlement company to
bring down the debt bill and interest rate of payment.
consolidation and settlement have an adverse affect on the credit
rating of the customer. By making regular payments the customer puts it
back in the re-building phase. It is best advised to take help of debt
consultant to evaluate one’s debt situation and get the best suited
advice for it.
you want to get out of debt and hire a debt settlement company for debt
negotiation then I have an important piece of advice. Do not go
directly to a particular debt settlement company but rather first go to
a debt relief network who is affiliated with several legitimate debt
companies. In order to be in the debt relief network, the debt
settlement companies must prove a track record of successfully
negotiating and eliminating debt. They must also pass an ethical
standards test. Going through a debt relief network will ensure that
the debt company you are provided with is a legitimate and respected
company. This is the most efficient way in finding the best debt
settlement companies and increasing your chances of eliminating your
FreeDebtSettlementAdvice.com is one of the largest and most
respected debt relief networks on the marketplace today. To find a debt
settlement company through FreeDebtSettlementAdvice.com check out the
Free Debt Advice.
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