Debt consolidation varies from credit counseling or DMP
Category:business payday loansDebt settlement
. No regular periodic payments are made to your creditors with debt settlement. Instead, your debt settlement provider guarantees to negotiate a lump amount to solve your debt at an amount not as much as you currently owe. This is dangerous, and also a long term negative effect on your credit file and, in change, your capability to obtain credit.
Some debt negotiation organizations may claim you owe that they can arrange for your debt to be paid off for a much lower amount – anywhere from 30 to 70 percent of the balance. For instance, if your debt $10,000 on a charge card, a debt management company may claim it may arrange for you really to spend from the debt at a lower price, say $4,000.