TopConsumerReviews.com
      September 24, 2017

Home  >  Debt Relief  >  Articles

Your Information Is Secure
60+ Ways to Save Money Newsletter

Latest Reviews

Baby Cribs

Credit Card Consolidation

Graduation Invitations

Gutter Guards

Hair Care Products

Installment Loans

Makeup

Reverse Mortgages

Tickets

Web Hosting

 

Related Articles

Benefits of Debt Settlement

Debt Consolidation vs Debt Settlement

Debt Relief vs Bankruptcy

Pitfalls of Declaring Bankruptcy

Reasons for Debt Consolidation

The Bankruptcy Process Explained

What Is Debt Consolidation?

What Is Debt Negotiation?

What Is Debt Settlement?

What To Do if You're In Debt

 

Top Consumer Reviews Articles

TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

Debt Consolidation vs Debt Settlement

When it comes to debt relief, there are several different types that can provide effective results to those who need to either get rid of their debt through a structured payment program or in one lump sum payoff. Quite simply, this is the difference between debt consolidation and debt settlement. Before deciding which one is right for you, it may help to know a little more about each option and how it will affect your future ability to obtain credit.

Many people may not realize this, but there is a big difference between debt consolidation and a debt consolidation loan. The latter involves a lender granting money to be used for the purpose of paying off other debts in exchange for one single monthly payment. Debt consolidation, on the other hand, is a term used by many non-profit organizations that offer debt management services without actually issuing a loan. With debt consolidation, your bills are still combined into one lump sum payment and payable directly to the non-profit agency who then distributes individual payments to your creditors based on a customized agreement.

In most cases, a debt consolidation program will allow debtors who are seriously delinquent with their bills to regain current status with creditors. Because a debt management company works to negotiate lower interest and monthly payments with each creditor, most individuals will see their credit reports updated to "Paid as agreed" within 1-3 months of consecutive monthly payments through the new program.

Debt settlement is a fast and permanent solution to debt problems, but it often requires a lump sum payment in order to satisfy the entire debt. As the name implies, debt settlement allows you to settle a debt at a fraction of the account balance. Depending on the length of delinquency, some debts may be settled for as little as 20% or as much as 80% of the total account balance. When you enter into a debt settlement with a creditor, the account will commonly be reported as "Settled account" on your credit report. Although this is considerably less desirable than "Paid as agreed", it shows that you have made a good faith effort to repay the debt in accordance with your ability. At the same time, a notation of a settled debt is much better than continued late or missed payments or, in extreme cases, even bankruptcy.

Once a debt settlement agreement has been reached and paid in full, the lender will "forgive" the remaining balance on the account. In some instances, depending on the amount of forgiven debt, some lenders may issue an income form to both you and the IRS. This means that a portion of the debt may be considered as income and, therefore, may be taxable.

Once you begin to fall behind with debt payments, it's important to regain control over your finances as quickly as possible. Not only can a poor credit rating affect your ability to get credit, but it can also hinder the potential for future employment. Today, many employers perform a credit check on their new employees and it can make a great deal of difference whether you attempted to rectify your financial problems or just ignored them. At the end of the day, the best way to handle budget woes is to face them with the knowledge that there are options to getting out of debt.

The Latest: Antigua pleads for debt relief after Irma

UNITED NATIONS (AP) - The latest on the U.N. General Assembly meeting (all times local): 7:40 p.m. Antigua and Barbuda's prime minister is pleading for debt relief to help rebuild from Hurricane Irma, which decimated the tiny island of Barbuda and forced ...

Published:  Thu, 21 Sep 2017 15:51:00 GMT



Damaged by Hurricanes and "Vulture" Capitalism, Caribbean Islands Plead for Debt Relief

Last week, just days after Hurricane Irma thrashed through the Caribbean with record-high winds, the Catholic bishop of the island nation of Dominica sent a letter to the managing director of the International Monetary Fund (IMF). Bishop Gabriel Malzaire ...

Published:  Wed, 20 Sep 2017 01:00:00 GMT



Three Must-Have Debt Relief Tips

GREENSBORO, N.C. -- It's so easy and fun spending money, but boy is it hard to get out of debt! It takes a lot of hard work! Money expert, Ja'Net Adams wrote the book, Debt Sucks: Everyone's Guide To Winning With Money So They Can Live Their Dreams.

Published:  Wed, 20 Sep 2017 07:16:00 GMT



Thousands of private student loan borrowers will get debt relief

NEW YORK (CNNMoney) - The nightmare is almost over for thousands of people who faced illegal student debt collections lawsuits. The Consumer Financial Protection Bureau took action Monday against National Collegiate Student Loan Trusts, which owns more ...

Published:  Tue, 19 Sep 2017 07:27:00 GMT



Greece's Papadimitriou on Bailout, Debt Relief, NPLs - Presented by: The Aol. On Network

Sep.21 -- Greek Minister of Economy and Development Dimitri Papadimitriou discusses the Greek bailout, the timeline for debt relief, non-performing loans and his outlook for the economy. He speaks on "Bloomberg Daybreak: Europe."

Published:  Thu, 21 Sep 2017 00:36:00 GMT



Letters from Cardinal Daniel DiNardo, USCCB president, on debt relief

amenable to this reasonable request. At this hour of need, we pray that God may inspire generosity in people around the world, that those affected may be aided in their efforts to rebuild their lives. We also pray that our bonds of solidarity as one Church ...

Published:  Fri, 22 Sep 2017 13:29:00 GMT



Debt Relief & Consumer Lawyers

Do you have debt problems and are wondering if you should get an attorney to help Below you'll find articles on whether you should hire a debt relief lawyer to help with wage garnishment, car repossession, student loan issues, debt collection lawsuits ...

Published:  Tue, 19 Sep 2017 17:56:00 GMT



Share Us!    Share TopConsumerReviews.com on Twitter Share TopConsumerReviews.com on LinkedIn Share TopConsumerReviews.com on Google+ Share TopConsumerReviews.com on Pinterest

Home      About Us      Terms & Conditions      Privacy Policy      Contact Us      Disclosure