Debt Consolidation Services When to Consolidate and When to Get a Debt ... Best Syndication

27.10.09

Debt settlement or debt elimination services work a bit differently. Instead of negotiating a lower payment, the company negotiates a settlement amount that clears the debt away forever. When a settlement is reached, you make one lump sum payment to the creditor, pay the service the fee that you owe them, and you are done. Debt consolidation services will often offer consolidation as well as debt settlement.

You still need to know what you need from debt services - consolidation or settlement. This typically depends on two factors: how much debt you have, and how much of that debt is unsecured debt. If you have more than $10,000 in unsecured debt, you need debt settlement services. However, if you have any amount of secured debt, spread out among several different creditors, you need debt consolidation services. So, as you can see, you may in fact need both services.

If you have less than $10,000 in unsecured debt, you will most likely only need debt consolidation services, as this unsecured debt can be combined with the secured debt that you owe to make you eligible for the services, and to still get financial relief with one low monthly payment.

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