Debt Settlement
Credit Card Negotiation & Consolidation

Settle Debts & Eliminate credit card fast!

Debt settlement is an alternative to debt consolidate loans, bankruptcy & consumer counseling and you may save up to 60%. Debt settlement offers consumer's relief from credit card interest with negotiation as an alternative to consolidating debts in a secure loan. Are you ready to negotiate bills and eliminate credit card debt?

Negotiating Debt Settlement

According to Peter McGraw debt settlement is an excellent way for consumers to reduce their credit card debt without going through the pain and agony of a bankruptcy.

There comes a point in time when some borrowers will have to make a decision regarding the debt they can't afford. If you cannot afford you minimum payments and you have no equity, there are some decisions you will need to make. Typically there are four debt relief options when considering dissolving and eliminating debt.

Learn More About Debt settlement!

• Bankruptcy vs. Debt Reduction
• Consumer Credit Counseling
• Debt Settlement
• Is it wise to let your bills go?

Debt settlement can reduce a debt load and helps you avoid bankruptcy, but it is not always successful and it does not happen overnight. . Consumer credit counseling stretches your debt to be paid off at a slower more affordable pace. Consumer Credit Counseling does put permanent derogatory comments on your credit report. Debt settlement and bankruptcy also put negative comments on your credit report, so what is a borrower supposed to do. Although, debt settlement does temporarily lower your credit scores, many borrowers bounce back with re-established credit within a few years. Your credit report will say "Paid -Settled for Less."

Talk with a few different financial advisors before committing to a plan that promises to reduce your credit card debt.

Consolidate Debt Versus Negotiate Bills

Comparing Debt Settlement and Debt Consolidation Loans

According to the Federal Reserve, Americans are in more than $2.15 trillion of debt. Credit card debt alone totals about $800 billion -- about $8,500 per family -- up more than 100 percent over the previous 10 years. So, if you're in this situation you're not alone. But, what's the best way to get out of credit card debt? Which is the best credit card debt solution--debt settlement or a debt consolidation loan?

According to BankRate.com, consumer credit counseling involves helping consumers develop a budget and the discipline to make steady payments to clear their debt loads. Debt management programs (DMPs) are one of the ways credit counselors work with consumers to pay down credit card debt. This involves taking a predetermined monthly lump sum payment and distributing it among the creditors until the accounts are paid in full. Then, the credit accounts are closed. Although DMPs are referred to as debt consolidation, they are not the same as debt consolidation loans. And, credit card debt negotiation (also known as debt settlement and debt elimination) is different from both DMPs and debt consolidation loans.

A debt consolidation loan pays back all your debt; debt settlement negotiates the pay offs so you actually pay less debt back. Typically, a debt consolidation loan involves getting a home equity loan (second mortgage) or a mortgage refinance. The proceeds are then to pay off secured debts that involve collateral, like a car loan, and unsecured debts like credit cards. Debt settlement is the process of getting creditors to accept a lump-sum payment that is less than the balance owed on the debt. This can be done by hiring a company that specializes in debt settlement or by negotiating with the creditors yourself.

A debt consolidation loan, unlike debt settlement, will help your credit. Once you pay off your credit cards, as long as you don't run them up again, your FICO credit scores will increase. But, you will have to pay off the debt consolidation loan. And, because your house typically secures a debt consolidation loan, you could lose it if you are late with your payments. With debt settlement, creditors will typically indicate something similar to "settled for less than what was owed" on the account, which decreases your scores. Plus, you will get a 1099 at the end of the year for the amount of debt the creditor forgave.

Which you choose depends on your situation. Debt settlement is definitely better than bankruptcy. The effects on your credit are less devastating, and you get the peace of mind that your bills are paid. And, because you've closed the credit accounts, you aren't in danger of running up your debts again. With debt consolidation loan, you don't have to close the accounts you paid off. But, it's real easy to run up those balances again and get further into debt. Plus, you lose your home if you get behind on the debt consolidation loan payments.