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Friday, 04 April 2008 |
By Liz N. Roberts
 If youre presently having problems with your credit card debt, perhaps youre thinking about applying for a debt consolidation loan or looking at the option of credit card debt settlement. Both a loan and a settlement are methods of debt reduction but is there a difference between the two? If so, what are these differences?
Simply put, a debt consolidation loan is a loan that you take out to pay of all of your debts at once. If you own several credit cards and you have a large outstanding balance on each, this may just be the more practical choice for you. With a debt consolidation loan, all your credit card debts are consolidated or combined into a single debt with only one, low interest rate to pay.
What about debt settlement? A settlement involves a negotiation between you, the credit card holder and your credit card company. If you are experiencing financial crisis due to uncontrolled circumstances, you can actually ask for a settlement in the hope that your credit card company would be considerate enough to grant your request. For example, |
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Last Updated ( Friday, 04 April 2008 )
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