Debt settlement according to Louisiana credit management specialist is any plan or tactic that makes it more affordable for debtors to pay down their debt balances. These tactics can lessen your stress and help you better pay down your outstanding balances faster. Debt Settlement programs can also be helpful to you in reducing your monthly payments and making your monthly payments more affordable. However, you need to be very careful when hiring debt settlement companies as there are fraudulent debt settlement companies who have the sole intention of taking your money and running away with it.
Debt consolidation is also one of the popular debt relief programs. You get debt relief programs by combining all your outstanding loans into a single loan. This loan will have a lower interest rate and affordable monthly payments. But before you decide to consolidate your debt, it’s important that you know if you’re better off with a debt consolidation loan or a debt settlement loan.
Credit counseling is a debt management plan wherein you and your creditors to reach an agreement on repayment terms. The terms of the agreement are such that you pay a certain amount of money every month to the debt management company. They in turn pay your creditors at a predetermined rate. This method works great if you have a good credit score or you have enough money to settle your debt. But because of the recession, more people are falling into debt and even people who have a good credit score fall into debt because of the rising prices.
Debt settlement is another debt relief option. It is where the debt settlement company directly negotiates with your creditors in order to have them reduce the total debt owed to them by having you make a monthly payment to them instead of making monthly payments to your creditor. They also reduce the interest rates they are going to charge you because they know that you won’t be able to settle your debt alone. Your debt will be settled using their debt negotiation company which will require you to have a total debt that exceeds $10k. They will then negotiate with your creditor in order to get you a better deal for debt settlement as well as a lower overall utilization ratio. Click this link https://www.louisianadebtreliefhelp.com for more information.
Both debt consolidation and debt settlement can leave a negative impact on your credit score but debt settlement has a bigger impact because it requires a loan while consolidation requires a home. You will need to be prepared for the risk of losing your home if you choose debt settlement. But if you think your debt is so bad that you cannot afford to pay it alone then debt consolidation may be the better option for you. The benefit of debt consolidation is that it will allow you to spread your debt over a longer period of time and it will save you money by being more flexible with your repayments.