A lot of solutions presented to people in need of debt relief sometimes sound like a loan to pay off a loan. And, as you struggle through debt from one source, the idea of engaging in a new one doesn’t seem as ideal. But the truth of the matter is that, ultimately, you have options. And you need to know those options and you need to understand them sufficiently enough to take an education choice. For example, what’s the difference between Debt Settlement and Debt Consolidation? Which one is best for you? At Gershfeld Law Group, we’ve heard these questions MANY times.
Debt settlement is negotiating with creditors to settle a debt for less than what is owed. This method is most often used to settle a substantial debt with a single creditor, but can be used to deal with multiple creditors. Debt consolidation is an effort to combine debts from several creditors, then take out a single loan to pay them all, hopefully at a reduced interest rate and lower monthly payment. This is typically done by consumers trying to keep up with bills for multiple credit cards and other unsecured debts.
Which is best for you? Well… it depends. In fact, it depends on far too many factors to go over in detail as each has pros and cons and each is better suited for different scenarios. For example, in the case of debt settlement, do you feel prepared to negotiate with creditors? In most cases, you might be trying to avoid them or are tired of their incessant calls? How much can you negotiate? How much is reasonable? Did I get the best possible value out of my negotiation?!
Being mired by all these questions is exactly what Gershfeld Law Group wants to avoid for you. Let an expert handle it. We’re here for you. Contact us now to talk more about your options and solutions for debt relief.