Debt Consolidation vs Debt Settlement

8 posts

Not a bad idea:



http://www.cashguru.info

From Uk, 4 posts

I went down this route two months ago and decided as i had some equity in my house i would get a secured loan to pay off all my debts as they were getting on top of me, it was an easier solution. I was origionally paying £550 for my debts, mostly credit cards that would have taken maybe 20 years to pay off,
i came across a website secured loans which lists the best secured loan companies and apr's i got quotes off three of them and got my monthly payments down to £185 a month over 10 years with a good apr, i am now more than £300 a month better off and the end is in sight, i have now destroyed my credit cards!

Kev

From UK, 17 posts

Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan. Debt consolidation can simply be from a number of unsecured loans into another unsecured loan, but more often it involves a secured loan against an asset that serves as collateral, most commonly a house. In this case, a mortgage is secured against the house. The collateralization of the loan allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale (foreclosure) of the asset to pay back the loan. The risk to the lender is reduced so the interest rate offered is lower.

Debt Settlement is an aggressive approach to debt reduction, which may be appropriate for debtors with serious amount of debt and are considering bankruptcy. A debt settlement agency negotiates with the creditors to settle the debt for a lower amount than owed, as the debtor saves their money for a lump-sum settlement payment. After the debt is settled, the creditor will send a letter stating the debt obligation was fulfilled, and will report to the credit bureaus that the debt has been, “Settled for less than full amount”, “Paid” or “Settled”. Creditors will usually only settle for less than owed when the debtor is under serious financial strain because if the debtor chooses to file bankruptcy, then the creditor gets nothing. If no financial hardship is evident the creditor may choose to take legal action.

I would recommend consulting a professional company. I have used http://www.idealfinancesolutions.co.uk in the past and found that they were very helpful.

1 post

Hi,

The Debt Settlement process involves negotiating with your creditors to settle your debt for amounts significantly less than you currently owe; typically debt settlement can settle your debts for 40-60% of your current balances. This will save you sizable amounts of money on debt principal and interest. It also provides you with the opportunity to pay-off your debts faster.

Debt Consolidation can be accomplished two ways. The first method is through a debt consolidation loan, and second through a debt consolidation service. A debt consolidation loan provides funds to consolidate all of your debts into one single monthly payment and is traditionally secured in the form of home equity. A debt consolidation loan reduces the number of payments you have going out monthly and can simplify your debt problem. However, a debt consolidation loan does not mean you are debt-free; the debts have just been transferred to a new creditor.

Instead of debt consolidation as I know debt elimination is better.
For more detail you may check debtxfactor.com.

Good Bye

2 posts

This is a Complete set of small and objective articles, so you can decide easily. Describes benefits and drawbacks.

Hope it helps!



http://www.badcreditloanservices.com/article/2343/what_to_seek_on_a_debt_settlement_agency/


http://www.badcreditloanservices.com/article/2525/why_you_should_choose_debt_settlement_over_consolidation_loan/

1 post

It might be easy to destroy the card .... but bank people might file a case on you for that and for not paying them what yo have agreed to do while taking up the loan... should have got a clear view of the loan and terms and conditions before getting the loan..
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tonygreig



Credit Card Debt

2 posts

Hi
I don’t have so much idea regarding this subject. Just I suggest you to take steps accordingly.

2 posts

Hi
I don’t have so much idea regarding this subject. Just I suggest you to take steps accordingly.






[url=http://www.foreclosure101.com]Foreclosure[/url]

2 posts

yes if you want the best way to consolidate your debts, get an independent mortgage adviser he will help you out
Vik

4 posts

In simple terms Debt consolidation is adding up all your outstanding loans and repaying all the loans with single installment on regular intervals (normally monthly). And Debt Settlement is actually paying the outstanding loans by entering into agreement with the creditor as one time settlement. You will normally get some discount while doing debt settlement. Debt settlement helps you to improve your credit rating.