Debt Consolidation Versus Debt Negotiation

Debt consolidation experts differ from debt consolidation negotiators in that the debt negotiators will work to get your bills reduced, rather than simply rolling your bills into one monthly payment. Some debt negotiators will work to get your bills reduced up to "40-60" percent. This means if the negotiator manages to get your debts reduced to 60%, then if you owed $10,000 in debts, your debts will be reduced to $6000.

Be aware that some debt consolidation services and debt negotiators will claim to relieve you of debt in one year or else in one and half years. But do not fall for this, especially if you have negatives on your credit report. Why? Because if you have judgments, defaults, or what have you on your credit report, it will remain on the report for up to three years, regardless of whether or not you pay your debts off. In addition, if you have a bankruptcy on your credit report, then it will stay on your credit report up to ten years.

Few debt negotiators will allow you to control your own debt management plan through your own banking account. Yet, few companies offer free counseling and your "money back guaranteed." Be aware that these services charge fees for their time and potentially charge high rates of interest. Therefore, make sure you read all paperwork offered to you by the company before signing any agreements.

If you are in debt, you may want to reconsider bankruptcy by choosing a debt consolidation solution or else hire a qualified low-fee debt negotiator to act on your behalf. In conclusion, few debt negotiators will work hard to save you money, and at the same time let you know that your credit report will remain in tact even if you payoff your debts.