Debt Consolidation vs. Debt Settlement
Which is a better way to get out of debt, debt consolidation or debt settlement? It depends on how badly you are in debt and how quickly you want to get out of debt. Consolidation, like a car loan, can take about five years. Settlement usually takes about three years to get you debt-free. Since consolidation requires a loan, making consistent payments on that loan can help build up your credit. Settlement will cost you some of your credit in exchange for paying back less than what you owe. Debt settlement is the better solution if you are really in over your head with your unsecured debts.