What are the differences between debt relief law and debt settlement?

Debt relief law and debt settlement are two different types of debt relief programs that can help people who are struggling with debt. Debt relief law is meant to provide legal protections to consumers who are struggling with debt. It enforces limits on how much creditors can collect from borrowers and makes sure they are respecting laws that are in place to protect borrowers. It can also provide borrowers with relief from interest and other fees and provide them with additional time to pay down their debt. Debt settlement, on the other hand, is an agreement between the borrower and the creditor to settle the debt for less than what is owed. This is often done when the borrower can’t pay the full amount and the creditor is willing to accept a lower amount in order to get some of the money they are owed. It can reduce the amount that is owed, but it could also have a negative effect on the borrower’s credit score and report. In North Carolina, debt relief law is mainly enforced by the Consumer Financial Protection Bureau, while debt settlement programs are typically run by third-party companies. Debt relief law is generally more reliable and regulated, while debt settlement is better suited for more desperate situations.

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Does debt relief law help with collection agencies?
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What are the differences between debt relief law and debt settlement?

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