| With a recession going on around the nation, | | | | consolidation loan. If a debt consolidation can be |
| consumers are being flooded with offers from debt | | | | offered, it will normally help restore credit. |
| consolidation companies. The offers can be | | | | On the other hand, debt settlement is available to |
| overwhelming for consumers and making a decision | | | | everyone, regardless of how good or poor one's credit |
| can be stressful consumers do not know which | | | | is. Debt settlement companies claim that they will |
| companies to trust. Because financial decisions made | | | | negotiate with a consumer's lenders to lower the total |
| can influence their credit, consumers need to consider | | | | amount of debt owed for a fee that is usually paid in |
| the offers but understand the difference between | | | | advance. While some debt settlement companies are |
| debt consolidation and debt negotiation. | | | | legit, others are not. |
| Debt consolidation is when one's debt is combined and | | | | Consumers should be aware of the these companies |
| consolidated into one payment. Consolidation may | | | | by researching them prior to taking part in any offers |
| require large sums of money and many people tap into | | | | that they present. In this case, there is no change to |
| resources available such as their home's equity. If that | | | | the consumer's credit and he or she has lost money. |
| can not be done, many people opt to join a debt | | | | On the other hand, debt settlement, unlike consolidation |
| repayment plan such as credit counseling. A debt | | | | of debt, will settle an account for less than the balance. |
| consolidation loan can then be paid back in small | | | | However, in this case, it will report as a settlement on |
| monthly payments. However, bad credit debt | | | | a credit report and lower the credit score. This effect |
| consolidation loans are rarely available. This means if | | | | can remain on the credit report for seven years. |
| your credit is destroyed, you may not be eligible for a | | | | |