Stephen Bis

If you happen to be someone who is having restless nights and losing sleep because of your credit card debt, then that means there is a good chance you are weighing all of your options on how to resolve this situation. You may have spoken with a few different companies or spent countless hours researching the internet to determine whether to go the route of debt consolidation or debt settlement.

What it really boils down to is the financial situation that you are currently in. If you don’t have a very high amount of debt and aren’t having an extremely difficult time paying it off then debt consolidation may be a better fit for you. What the debt consolidation company will do is lower the interest rate on your accounts, and set up a reasonable repayment program in which the company will disperse the payments to the creditors for you. At the end of the process you will be debt free, however the process usually takes around five years and you do have to pay back the entire amount plus interest. Nevertheless, you will become debt free.

Now does debt consolidation work for everyone, absolutely not. You won’t really experience to much of a decrease in the amount that you must put out each month. So for those of you who are really struggling to keep up or have fallen behind debt settlement may be a better option. The best candidate for debt settlement is someone who is around $15,000 in debt or more and are having real problems keeping up with the minimums. Seeing that in debt settlement you will have a reduced amount you put out each month because you are not going to be paying back in full and not going to be paying out the high interest.

Basically the difference boils down to this, with debt consolidation you pay back around 125% of what you owe, which is a far cry away from the amount you would pay back using the minimum payment structure. However it is also a far cry away from the amount you will pay back with settlement. With debt consolidation it will also take you around five years to become debt free. Debt settlement you can look to save between 40-50% of what you owe and be out of debt in 2 years or less, depending on how fast you can raise the funds necessary to make the settlement.

From my experience people with less than $15,000 and who are current with no real problems paying on time are better suited for debt consolidation. Where as people who have $15,000 or more and having problems paying are much better suited for debt settlement.

If you're debt is becoming a problem and you need a solution to become debt free then fill out our debt settlement pre-enrollment application. One of our debt analysts will contact you to review your current situation. If you qualify we can save you between 40-50% of your current debt and put you on the road to be debt free in two years or less. Apply now it's free with no obligation!