These are undoubtedly difficult times, recession is everywhere and there is no end sight, consumers nationwide start searching for debt management program in order to get a solution and sooner than later get their finance back in line. However, which debt management program is best? is depend on my particular financial situation or the goals that I want to reach? This article is intended to review the main aspect of debt management programs, such as debt consolidation and debt settlement.

Debt Consolidation

Debt consolidation debt management program is the easier and cheaper way to get your finance back in order, your debt consolidators will negotiate in your behalf a lower interest rate and a lower monthly payment, you get all your debt into a larger loan with just one monthly payment, a longer repayment span make the management of your debt completely easy. Another important advantage of debt consolidation is that you rebuild your credit, by paying on time during the repayment span you get your credit rating improved.

Some disadvantages are, you are required with a collateral, generally your house or other sufficient assets, you do not get your debt reduced, you could be changing unsecured debt for a new secured debt and you become debt free in 4-5-6 years.

Debt Settlement

This debt management program is the one to go if you want to get your debt reduced saving thousands in the debt negotiation process, it has a shorter span of time for becoming debt free, 12-36 months, plus you get similar benefits such as; lower and unique monthly payment, lower interest rate, but you do not need a collateral

The main disadvantage of debt settlement or debt negotiation is that you do not rebuild your credit history, but nothing than a seasoned debt counselor could not get a way around.