You’re not the only person going through the agony and pain of credit card debt. The new wave of inflation has really drowned many people in the pool of unsecured debt. The federal administration has really given relief to people suffering from debt by introducing debt relief programs in the market. These programs are established for the betterment of the people as well as the economy. Due to these relief options, a person can get rid of debt in a very short span of time. Although many relief options are present in the market, the most commonly used methods are liquidation and consolidation. In the following article, we are doing full analysis of debt settlement vs. debt consolidation. With the help of this article, you can understand which option would best suit your financial situation.
Debt Consolidation: This process is best if you have to pay the amount to more than one creditor. In the consolidation method, you receive a single loan to pay off all the other small loans. This loan is issued at a low interest rate. With the help of debt consolidation, you will get out of the anxiety of liabilities within the maximum period of 4 to 5 years. This process is carried out under the supervision of certified professional experts.
Debt Settlement – In this process, you will have the opportunity to easily get a 50% to 60% reduction in your outstanding balances. To use the advantages of this method, you must hire the services of professional and certified settlement companies. The financial gurus at these companies will talk to your lenders and inform them about your financial situation. With the help of this option, you get rid of your liabilities within 2-3 years.
If the amount of liabilities is less than ten thousand dollars, debt consolidation cannot be used, but if the accumulated amount of liabilities is more than $10K, debt settlement is suitable.
Both of these methods are good in their respective places and you can select any of them based on unstable financial conditions.