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Mrs Alina Barnes

Resumen biográfico Tribal Installment Loans Credit Card Debt Settlement Vs Cheap Debt Consolidation Loans

There are two very popular debt relief measures in the industry for people with overwhelming debt problems. Neither of these options is bankruptcy and if you heard the debt relief companies talk about them, you would likely agree that both options are better than bankruptcy. Consolidation and credit card debt settlement are the two items in question and many people wonder which one is a better choice for their situation. This depends on what type of solution you are looking for, because there are some definite positives attached to each one of these solutions. In order to make this choice, you need to ask yourself a few questions.

Can I pay off the current balance with a little bit of help?

The major difference in consolidation and settlement is the fact that consolidation requires you to pay off the total balance in most cases. Consumers are not going at this alone, though. They get help from a cheap consolidation company that gives them a credit counselor, as well as a really nice interest rate. The nice thing to note is that it becomes much easier to pay off unsecured installment loans direct lenders when you are doing it with a low interest rate as opposed to a bloated, inflated rate that most credit card companies will charge. If you are someone who has the ability to pay off the balance of your loan with a little bit of help, then consolidation can work.

Do you have a huge lump sum?

If you are holding a nice, large lump sum right now, you can benefit from the power that the money gives you. In the credit world, having money is akin to having power. The credit card companies will sometimes trade money over the long run for the sure thing that goes along with money today. If you have something like 35% or 40% of your total debt amount in cash right now, then it is worth your time to call up the creditor and make them an offer. This is better for people who don't think they will be able to pay off their total balance and it's typically a good option for those with past due debts.

Regardless of which of these a consumer chooses, he or she will be in much better position over the long haul. Bankruptcy is something that benefits no one, so it's best to stay away from that in all cases.

Hector Milla runs the Credit Card Debt Free website - where you can see his best rated credit card debt settlement and debt consolidation service.