Consolidating credit card debt into line of credit

As such, the longer it takes you or the agency you’re working with to negotiate your settlement, the more likely the creditor will take legal action against you.Debt consolidation is much different than debt settlement.

The biggest advantage to debt settlement is that it reduces the amount of debt you owe.While reputable debt settlement companies will put this money in a savings account that they will draw from once negotiating a settlement amount, your payments will not go to your creditors until that settlement is determined.Therefore, you are not making any payments toward your loan(s) during the time that settlement is being negotiated – and that time frame can range from a few months to a couple years.Some choose to develop an aggressive repayment plan. And still others consider debt settlement or debt consolidation.Debt settlement and debt consolidation actually have the same purpose – to get you out of debt faster. If you’re considering either of these two options as a way to get out from under a pile of debt, we encourage you to read further and become more informed about the pros and cons of each.

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