"Why should I choose debt settlement over debt consolidation?"

Why should I choose debt settlement over debt consolidation? The reason is very simple: When people understand that their debt status needs urgent attention, it becomes too late for consolidating through a loan. Consolidation is an intelligent option when the credit score is good with no defaults. If there was a default in payment, missed payments on loans, bills, etc then the only choice left is Debt Settlement. Only if your credit
history is proper without any defaults, you will be able to obtain a lower interest rate. If you really want to compensate at least a bit for the extension of the repayment program or avoid a bankruptcy, without increasing your debts more, Debt settlement is a viable option.

Debt Settlement Advantages Over Consolidation: When you opt for a Debt Settlement, you actually get a reduction in the debt amount. Through negotiations with your creditors, debt settlement agents can obtain new terms on your debt. With Debt settlement you also have a possibility to get a 60% waiver off your loan amount. When your have financial constraint, debt settlement agents will negotiate on your behalf to your creditors and get a deal that can improve your current situation. This definitely works 99.99% well because, if a solution is not arrived, then the possibility of filing a Bankruptcy is high which neither beneficial for the creditor nor you.

The most important advantage is that, after you get a Debt Settlement your credit score will start ticking back. If you already have a bad rating due to defaults, then settlement would be a wise option to reduce debts and become debt-free.

Why would we think about Debt Settlement or Consolidation? Leave aside credit rating, cause when we are in debt that might be the last thing we worry about. The other issues that led to frustration and shame would include, but be limited to the following:

* Bankruptcy and it's implications.
* Harassing collection calls.
* Piling pending bills & ever increasing loan amount.

It is rather funny to opt Debt Consolidation, where it’s like trying to think you are free of debt, but reality is that you get debt from another resource and repay current debt resulting in Debt again. At times the second loan can end being higher than your original loan commitment!! Debt Consolidation and Debt Settlement are really handy in clearing debts, but we should know when to choose what. As far as I am concerned, I would go with Debt Settlement as I will not only become debt-free sooner, but also can get up to 60% waive-off!!