In a settlement process, a third-party agency negotiates with a lender or a creditor and agrees to reconcile the entire debt through a lump sum amount that is usually lower than the outstanding balance.
Helps you swiftly settle your financial problems
Might result to higher charges and will cost more than the actual amount due
A quick but a temporary answer to your money issues
Creditors may not be inclined to settling
The process of consolidating debt is to join together all of your accounts and clump them together into one enormous, singular debt. Borrowers usually take out a big loan with a more affordable installment option or more moderate interest rates to repay several creditors.
Does not need downpayment or collateral
Provides a more reasonable payment plan
Quick and easy processing
Can affect your credit score rating
May lengthen your payment terms
Borrowing money from financial institutions, friends, or family is called a loan. Personal loans may or may not require collateral or downpayment with varying rates depending on the organization.
A quicker and easier solution to becoming debt-free
Long approval time
May have more expensive interest rates