Bills are there and will be there mounting every single day, you barely reach the end month with some cash in your pockets, then the option of a debt consolidation loan seems to be perfect, it is just benefits, isn’t it? However, options like debt settlement consolidation are not openly discussed, maybe it could be a good option as well, who knows? Probably your debt counselor is the right person to answer that question.

Debt consolidation loans are a very good alternative because you deal with just one monthly payment, it has a lower interest rate, and the repayment span is longer 4-5-6 years, plus by paying on time you will be rebuilding your credit, and as consequence an improved credit score. However, your house or other assets could be used as collateral.

So if you owe 1.000 for example, you will pay 1.150 in 5 years, in five years you become debt free, you will have good credit, good credit score and your house will not being used as collateral any longer.

Then, we have debt settlement consolidation, you deal with just one lower monthly payment as well, lower interest rate as well, you have a shorter span of time for repayments 12-36 months, meaning you become debt free in less than 3 years, and your credit score become worst than ever, but you are not using your house as collateral.

So if you owe 1.000 for example, because of debt settlement, late fees waived and interest rate decreased considerably, you pay just 700, you become debt free in 3 years as maximum span, your house never was used as collateral.

Then, the only problem with debt settlement consolidation is that your credit history is not improved at all, the effect is the opposite, worst credit score but, nothing that a seasoned debt counselor couldn’t deal with, by using a secured credit card for example you can rebuild your credit score during those 12-36 months.

Last, the only intention of this article is to point out that there are several debt management alternatives and that is by working with a good debt management company that you will get the results you are expecting, specialized advise is priceless.