A lot of people don’t quite know the difference between a debt settlement program and debt consolidation loans. Both are forms of credit card debt relief and debt relief for other debts like personal loans and medical bills. The biggest differences are:
Debt Settlement
- Reduces total debt by up to 60%
- Eliminates interest entirely
- Does not show up on credit report
- Combines all debts into monthly payment
- Lowers monthly payment by up to 3 times
- Programs last up to 48 months
Debt Consolidation Loans
- Lowers interest to 3-5%
- Shows up on credit report
- Combines all debts into monthly payment
- Lowers monthly payment by up to 2 times
- Programs start at 48 months and are usually longer
