What is the difference between debt settlement and debt consolidation?

Debt settlement and debt consolidation are both options that can help individuals in Florida resolve their consumer debt. The biggest difference between the two strategies is that debt settlement is focused on reducing the total amount owed whereas debt consolidation is focused on lowering the monthly payments. Debt settlement is a process where consumers attempt to negotiate with creditors and debt collectors to accept less than the full amount originally owed. While this may be an attractive option because it could potentially reduce the amount you owe, it should be used as a last resort. Debt settlement can harm your credit score, and you may still have to pay taxes on the amount forgiven. Debt consolidation is when an individual takes out one loan to pay off multiple debts. The goal is to combine all of the debt into one loan with one monthly payment. The benefit of debt consolidation is that it might lower your interest rate and monthly payments. It may also make it easier to keep track of payments and due dates. Overall, debt settlement and debt consolidation are both ways for consumers in Florida to manage their consumer debt. However, depending on your individual financial situation, you may decide that one option is more suitable for you than the other. It is important to consult with a professional to determine the best course of action, such as a consumer debt defense lawyer, to help you explore all of your options and ensure that you make the best decision for your financial future.

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What is the difference between debt settlement and debt consolidation?

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