How does debt consolidation work? What to expect … vs how negotiation works
Debt consolidation works if you have a lot of credit cards bills in good standing and making minimum payments is just not making any progress with paying them off. If you apply for a debt consolidation loan, you take all of your bills and put them into one. You can also sometimes get a lower interest rate and a longer pay off period with these loans, which can be helpful.
Debt settlement is the option to consider for all of your bills that are not in good standing and are now owned by third party debt collection agencies. Signing up for a debt relief program is a good idea because the agency will negotiate and settle the amount owed to the collection agencies for you. They will also set up a payment plan for you to get rid of the new negotiated amount.