Debt settlement negotiation and debt consolidation are 2 popular methods of dealing with credit card debt. They are both effective methods, but which one should you use? There is a lot of information available on the internet about them and their pros and cons. But the truth of the matter is that each has their benefits and downsides. Which one is best for you? The main difference between DIY debt settlement negotiation and debt consolidation is in the amount of money and time the procedure will take. Working with a debt settlement organization can take up to 3-5 years total to reach an agreeable agreement with your creditors. When you cut out the middle man, you get rid of the most time consuming aspects of the negotiations. Click to learn more about debt settlement negotiation letter. You can also save a lot of money because you won't have to pay for lawyer fees or to start a payment plan with the creditor. With debt settlement negotiation, you can stop paying anything to the creditor and start paying the smaller lump sum amount immediately. It is very difficult to deal with creditors when they refuse to negotiate, but they usually do this because it is better than losing the entire amount you owed altogether. When you stop paying, the collection agencies have to stop calling and other attempts to collect payments from you will cease. This allows you time to get away from the situation without losing too much money. Debt consolidation offers the same benefits as debt settlement negotiation does. You consolidate all of your debts into a single loan that will be easier to pay off and can save you a lot of money in interest payments. When you do this you have to give up paying some of your credits, such as credit cards and personal loans. The credit that is still paid will show up on your credit report. With this kind of consolidation, the credit score does not suffer as much because there is no substantial amount of debt that is being repaid. Get more info on the debt settlement negotiation. Sometimes it is better to let the debt settlement negotiation services do the work. They know which creditors to talk to and what kind of offers to make. They also know the law and can usually use it to your advantage. These professionals also usually charge a fee, so if you are not able to get the best deal they can offer you a no win no fee arrangement. This is especially true if you have a lot of debt and it would be a lot cheaper to let them negotiate for you. If you can qualify for a debt settlement negotiation and a debt management plan, you should definitely use these services. The biggest advantage to these two methods combined is that you will be able to reduce your debt by about half and be debt free in about five years. You will have to go through credit counseling, however, if you go this route. Credit counseling can help you avoid bankruptcy and will allow you to make more informed decisions about your finances. Learn more from https://www.encyclopedia.com/social-sciences/encyclopedias-almanacs-transcripts-and-maps/loans-and-debt-resolution.