Debt Settlement Or Debt Consolidation – What’s the Best Option For Your Finances?

There are many debt relief strategies and methods that have been developed for those that are dealing with debt, but choosing the one for you is not as easy as it may seem at first. They all promise great results and minimal risks, but for the average, inexperienced user it can be very hard to choose a method that will truly work to their advantage.

One of the top rated methods is debt settlement and many people have benefitted from this as it is effective in eliminating debt and it also has a very low risk associated with it. This method eliminates around half of your debt simply by negotiating with your creditor and convincing him to eliminate annual fees, payment penalties and most of your accumulated interest. Although this method is mainly suitable for those with quite a lot of debt, over ten thousand dollars, it is truly effective and it can help you eliminate your debt in two to four years easily.

Another highly rated debt relief method is debt consolidation and this is a very good method for people with debt that does not qualify for settlement. With this, you can successfully turn unsecured debt into secured debt, by consolidating it using either your own collateral of government funds. Consolidating your debt will allow for a much lower interest level and can also help you by uniting multiple sources of debt into a single, easy to manage one. This method is great to use with credit card debt, but it has a bit more risk involved than debt settlement, as you risk losing your collateral if you become unable to pay your debt at some time during the process.

Despite the differences, both methods have proven that they truly work and that they have almost no effect on credit scores, so that you can easily use them without having to worry about future loans or credit. All in all, choosing a debt relief method really depends on your personal situation and the choice should only be made with professional help. This way, you can ensure a sound financial future.

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