What is the difference between debt settlement and debt management?

Debt settlement and debt management are two different strategies for reducing and handling debt. Debt settlement is a process of negotiating with creditors to reduce the total amount of debt you owe. Debt settlement companies work with creditors on your behalf to try to get them to agree to reduce the amount of debt you owe. The benefit of this is that you may be able to pay off the debt for less than what you owe. However, it may damage your credit score and you may still have to pay taxes on the amount forgiven. Debt management, on the other hand, is a process of reorganizing and consolidating debt in order to reduce your monthly payments and interest rates. Debt management companies usually contact creditors to negotiate a lower interest rate and then create a payment plan for you. This can help you pay off your debt faster and keep your credit intact. Both options can help reduce your debt and improve your financial situation. However, debt settlement is a more aggressive approach that can have significant long-term risks. Debt management may be a better option if you have a lower credit score and can’t qualify for a debt consolidation loan. Ultimately, the decision will depend on your individual financial situation and needs.

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What is the difference between debt settlement and debt management?

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