Debt Consolidation Vs Debt Settlement

[nancy]

Can any one tell me what is the difference between Debt consolidation and Debt settlement?

[john_smith1976]

Debt consolidation loan

Debt consolidation loan is a simple loan taken to clear off the previous debts. The borrower has to pay only one monthly installment for the new loan. Consolidation loan is taken in order to combine all the unsecured loans so that it makes your repayment of the debts easier. Debt consolidation provides this debt consolidation loan to get out of your debt fast.

Debt Settlement Program

Debt settlement programs are designed to help consumers suffers from financial hardship in order to reduce their debt through debt negotiation. In debt settlement process you stop paying your monthly high amount installments and save the money. This way when you saved at least enough money, you start negotiating with your creditors for a settlement. This is why debt settlement is also known as debt arbitration or debt negotiation, is an approach to debt reduction. In technical term debt settlement is the agreement between the debtors and creditors while debt negotiation is the process through which both party reach to that agreement.

Find more information at Debtreduction123.net