Which is better credit card consolidation or debt settlement? I need an honest answer.?
Question:
Answer:
Think of debt settlement as "bankruptcy on lay-a-way", cause the bank looks at them similarly. Settling the debt for less than the amount thay you rightly owe the your creditors will have show on your credit report.
Assuming you qualify for a consolidation loan, this is only a temporary fix if you don't correct what got you here to begin with.
List your debts from smallest to largest. Pay only the minimum on everything but the smalles, and pay as much as you can on it. Once it's paid off, take what you were paying on and apply it to the next smallest, pay it off and work your way down the list.
Cut up the cards, pay for cash and spend less than you make.
obviously debt settlement is the best option
Debt settlement is always best credit wise.
You should call Consumer Credit Counseling Services, they are free and will work with your creditors to lower your monthly payment as well as your interest rate. I used them several years ago and was debt free in 36-months.
I would honestly suggest you to join a debt settlement company who will negotiate with your creditors and reduce your principal debt by around 30% to 70% depending on your credit companies.
You can make minimum monthly payments and be debt free within 3-36 months. There are no hidden costs and upfront fees associated with the monthly payment options. Once you join the program, they will start negotiating with your creditors within 24 to 48 hours.
Whereas in a debt consolidation, your principal balance will not be reduced. You will be paying monthly payments and god knows how long it will take for you to be debt free.
Check out this debt settlement company who has helped me out with the unsecured credit card debt problem.
http://www.debtfreeafterall.com...
Good Luck
debt consolidation is the best..
Credit card debt consolidation adds up all your unpaid balances and converts them into a single payment. This payment is far lesser than each of the individual payments.
When you finalize a plan with a debt consolidation company, the company repays your dues to your creditors. Then you make a single payment to the consolidation company every month. Your average new interest rate is much below the old interest rate.
All credit card debt consolidation loans include some type of credit card and debt counseling. You have to trim your lifestyle to eliminate unnecessary expenses. This will allow you to set your house in order. But this necessary, as the ultimate goal of debt consolidation is to help you out of debt, while keeping your home.
Nowadays more and more people use accruing credit card debt as a general finance practice. First of all, many companies have relaxed the requirements for credit cards and overwhelmed potential clients with advertisements, so that these apply for those cards. Beyond it, credit cards are an exceedingly comfortable mode to pay for purchases. Nowadays credit cards are accepted by most retailers and service providers as usual means of the payment. If you would like to order any items or services on the Internet, besides, credit cards are a safer way of buying. It doesn't surprise, that with the simplicity and comfort which these little pieces of plastic bring, so many families are going in credit card debt because they live beyond their earnings.
However, it is an easy way to handle high balances through credit card debt consolidation. You can have loans in different shapes and sizes, but the final result is always same. Several monthly payments you have to make are merged to just one. Often people also receives a much lower interest rate. Some companies offers these credit card debt consolidation loans in the form of home equity loans. Often with this kind of credit card debt consolidation the lowest interest rates are offered. However, this assumes that you make available your home as collateral for the lender. However, if you suddenly couldn't make your monthly payments, this can become a traumatic problem. Read more about it at: http://www.credit-card-gallery.com/artic...
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