Such loans also tend to offer a longer repayment period.So if you want to look at the pluses and minuses of debt consolidation for your personal situation, you might want to start by considering your monthly cash flow — and ask yourself the following questions: Pro #1 — When you opt for debt consolidation, you have only one creditor to pay, and that company will call your creditors and negotiate on your behalf.
Get Debt Help Now 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.So when you get a debt consolidation loan, you can look forward to a certain amount of personal attention.Pro #2 — Interest rates are usually pre-set by creditors, so the debt consolidation firm handling your loan can definitely get lower interest rates and reduce (or even eliminate) late fees better than you can.However, if there is a chance to weigh the advantages of debt management vs.
debt settlement, the safer choice is debt management.
With so many negatives attached to the outcome, many consumers wonder: Does debt settlement really work?
For people who feel helpless with their financial situation and don’t want to declare bankruptcy, debt settlement could be the short-term answer.
So if you are delinquent on several credit cards or bills (e.g.
cable, cell phone, medical, etc.), you will have to negotiate a settlement with each one before you are out of debt.
For example, if you owed ,000, you might offer the creditor a lump-sum payment of ,000.