Is Debt Settlement the Same Thing As Debt Consolidation?

To quickly cut to the chase, no they aren't exactly the same thing, but yes, they do basically produce the same result - an overall reduction in the amount of money you must pay back to your lenders. debt consolidation loans

There are a number of different companies out there that will help you by dealing directly with your lenders and come to an agreement for a lower total debt amount. They also work to help you formulate a plan to become completely debt free in a far faster period of time then you would be able to accomplish otherwise. debt consolidation loans

Keep in mind though, that there are certain eligibility requirements you must meet in order to be able to qualify for many of these programs - usually you have to be in debt over a certain amount. Normally, you must have at least $10,000 in unsecured debts - this includes credit card payments, bills from doctor's offices or hospitals, and a few particular types of loans. debt consolidation loans

Keep in mind that there are also certain types of debts that do not meet the eligibility requirements for settlement or consolidation. These include any kind of home equity line of credit, cash advance loans and loans taken out who education. debt consolidation loans

These companies will almost always require that you have some sort of verifiable income. After all, there isn't much point in hammering out a new repayment agreement if you do not have the ability to pay any of it! debt consolidation loans

Expect them to also take a look at your credit report and history to ensure that you really are in over your head. If you just bought a car and you suddenly want to reduce the amount you owe, this will be easily spotted and denied.