Credit Card Debt Relief - What's the Difference Between Debt Consolidation and Settlement?

Debt relief can take many different forms. Theseall that, you still have the same debt you started
forms run the gamut from declaring bankruptcy towith. A better option might be debt settlement.
winning the lottery, the former not being a good idea2. Debt settlement - the debt settlement option for
as it ruins your credit and the latter being more rarefinancial relief is more of a negotiation versus a
than being struck by lightning twice in the same spotconsolidation. Here that $10,000 worth of debt is
on the same day. So if you're looking for debt relief,looked at by professionals trained in the art of debt
what avenues are there available to you? Let's saysettlement. They will work with you to discuss your
you're $10,000 in debt and the debt takes the formtotal debt and the methods they will take on your
of two or more credit card accounts. Here are abehalf to not only settle your debt, but reduce the
couple of options to look at and compare:amount you owe. They will work with your creditors
1. Debt consolidation - debt consolidation might beto settle your accounts. Your creditors, knowing that
considered a form of debt relief, except that you willgetting some settlement versus no settlement, are
be taking smaller amounts of debt and combining itnow more than ever willing to work with settlement
into one huge amount of loans. The advantage herecompanies. In today's economy, more people are
would be to lump all your debts under one roof andforced to go the route of bankruptcy, leaving
have one payment per month instead of smallercreditors holding nothing and you, the consumer,
payments scattered throughout different pay datesholding nothing for years to come and with the
in the month. It's also possible you will get a lowernegative stigma of bankruptcy over your head.
interest rate than your credit cards, but there's alsoDebt settlement is not financial consolidation, it is
the probability that the consolidation will cost youfinancial elimination, which can be your start toward
money up front or added to the new loan. And afterdebt relief.