Debt Consolidation or. The Debt Settlement Option: What one is better?

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Debt Consolidation and. the Debt Settlement Method: Which one is better?
The debt consolidation and the debt settlement each have their pros as well as cons. Which is best for you will depend on your specific circumstances.
By Sean Pyles Senior Writer | Personal finance and debt Sean Pyles leads podcasting at NerdWallet as the producer and host of the NerdWallet's "Smart Money" podcast. In "Smart Money" Sean talks with Nerds on NerdWallet's NerdWallet Content team to answer questions from listeners regarding their personal finances. With a particular focus on sensible and actionable money advice, Sean provides real-world guidance that can help consumers better in their finances. Beyond answering listeners' money questions on "Smart Money," Sean also interviews guests outside of NerdWallet and creates special segments on topics such as the racial gap in wealth as well as how to get started investing and the background of college loans.
Before Sean was the host of podcasts at NerdWallet He also covered issues related to consumer debt. His work has appeared throughout the media including USA Today, The New York Times as well as other publications. When Sean isn't writing about personal finance, Sean can be found working in his garden, going on runs and taking his dog on long walks. He is based within Ocean Shores, Washington.





Aug 5 2021


Edited by Kathy Hinson Lead Assigning Editor Personal finances, credit scoring debt and money management Kathy Hinson leads the core personal finance team at NerdWallet. Prior to joining NerdWallet, she worked for 18 years at The Oregonian in Portland in positions such as copy desk chief and team director of design and editing. Prior experience includes news and copy editing for several Southern California newspapers, including the Los Angeles Times. She graduated with a bachelor's in journalism and mass communications in Iowa's University of Iowa.







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You're trying to pay down . Should you use debt consolidation or debt settlement?
They sound alike however they are two different thingsand both can cause more issues for you.
It's the time to pay off debt
Register to join the link and monitor everything from mortgages to cards all all in one location.






Debt consolidation
In , several consumer debts are combined into a single one. You can make use of a balance transfer credit card, , home-equity loan and 401(k) loan.
Why you might choose this:
For a lower interest rate than you're paying now, that will help you save money and helps you pay off your debt sooner
In order to reduce the number of bills you're managing
If your debt that you're trying reduce is a manageable amount and you can type

How do you pay off your debts:
Debt settlement
It is risky as you defer payments from a creditor and then, when your account is severely delinquent attempt to negotiate a lesser payment to satisfy the debt.
Withholding payments can ruin your credit scores and opens you to being sued over payment -- and there's no assurance that the creditor will agree to settle.
You can hire or try a company, but beware that this industry is full with shady players. A Federal Trade Commission recently ordered 11 companies in this category to cease their marketing. They claimed that they took tens of million of dollars from the public and offered them no benefits.
Why you might choose it:
Make sure to do this only if you have an account that is long-delinquent, or is in trouble an insolvency situation, and you think that the creditor might take a partial installment. You have little to lose because the damage has already been done.




Author bios: Sean Pyles is the executive producer and host for the NerdWallet's Smart Money podcast. His work has appeared on The New York Times, USA Today and elsewhere.







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