Credit card debt consolidation or debt settlement?

It may not be an old debate, but it’s certainly one of the debates people are having in the new age. Which is better for people with debt problems? Is it debt settlement or should people look into debt consolidation for their long-term needs? The fact is that you will not find a concrete answer to this question. Some people benefit more from consolidation, while other people can really benefit from working with a settlement company. The correct answer depends on how much debt you have, how long those debts have been due, and your ability to make a large payment up front.

Settlement and lump sum.

One of the things you will need to have to pay off your debts is a large lump sum up front. A lot of people who are in debt don’t have money lying around like that. If they had the money to spend on a deal, they wouldn’t be in debt in the first place. With that in mind, debtors who don’t have a large amount of money for a payment to credit card companies won’t be able to take advantage of the low settlement options they provide.

Debts do not expire?

The only way to get a good settlement deal is if your cards have been expired for quite some time. For many people struggling with debt, the bills are in good standing. They have been paying the minimums and are still keeping the account current. In that case, liquidation won’t really work and consolidation is your best option. The degree to which you struggle financially is important in this debate. Settlement is something of a “final” solution, while consolidating your debts is an active way to dig yourself out of trouble.

Do you have organizational problems?

For people who just have a hard time getting organized, it might be better to think about consolidating their debts. When you have a bunch of little cards to keep up with, it can be hard to keep track of all of them. That’s what consolidation helps with. They will give you more than just a loan. It is a comprehensive plan and program to get out of debt. If this sounds like the kind of thing you need, then consolidation is key.