There are some major differences between consolidation and settlement. It is important to know the differences before making a final decision on how to handle your debt situation. A debt consolidation loan will combine all debt and offer one monthly payment. Usually, the payment will be lower than your usual combined monthly payments. This is because the consolidation company has agreements with credit card companies, allowing them to get a lower interest rate on the loan. Since the payments will be lower, this can save a lot of money each month.

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Which is a Better Option – Debt Consolidation Or Debt Settlement?