subject: Which Is Better - A Debt Consolidation Agency Or Debt Settlement? [print this page] Author: Hector Milla Author: Hector Milla
A debt consolidation agency has quite a few advantages over a debt settlement service. While a debt settlement service may be beneficial in certain circumstances, consolidating debt can help your credit while making your monthly payments easier to handle. Paula de la Torre Editor of the "Best Debt Consolidation Services" website -- http://www.FreeDebtConsolidationQuotes.net -- pointed out; " Debt consolidation can be a key for many people to get back on track in paying their bills. Combining debts into one simple debt is the basis of consolidation. It is possible to consolidate credit cards, personal loans, mortgages, and auto loans into one bill which means instead of having to pay three, four, or more creditors every month you would only have to make one payment A debt settlement service may be able to work out a payment plan with your creditors that is more feasible for your budget. However, you will still have to pay each creditor every month until they are paid in full. By getting a debt consolidation loan all your creditors will actually be paid in full by the company doing the consolidation. This means they will show as paid accounts on your credit bureau, thus making your credit even better. Another reason why debt consolidation loans are very important for many people is the fact that it will likely lessen your monthly payment. For example, say your monthly payments are $75 for a credit card, $300 for a car loan, and $125 for a personal loan for a total of $500 per month. Getting a consolidation loan to payoff these debts would likely result in a monthly payment of around $375, thus putting an extra $125 in your pocket every month P. de la Torre added. While a debt settlement service may not be a bad idea for some people, the number one way to get your credit back on track and be able to make your bills affordable again is by doing a debt consolidation loan. One monthly payment instead of many and the fact that you will likely have a lower monthly payment than what was being paid before makes debt consolidation a powerful tool that can change your life for the better. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.FreeDebtConsolidationQuotes.netAbout the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
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