If yourestruggling with debt, youre not alone.
Total household debt shot up to $17.80 trillion as of thesecond quarter of 2024.
So how do you deal with overwhelming debt?
Well compare two of the most common strategies: debt consolidation vs. debt settlement.
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Up for a debt challenge?
In 10 days,these 10 practical stepscould help you get back on the right financial track.
What Is Debt Settlement?
Withdebt settlement, you negotiate with creditors to reduce how much you owe.
A third party, such as a debt settlement company, also can negotiate for you.
Heres how debt settlement works and the process involved:
What Is Debt Consolidation?
Debt consolidation involves combining multiple debts into a new loan or credit card.
Lets review a detailed comparison of the process, impact on credit score, cost and the time required.
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Pros and Cons of Debt Settlement
Considering pursuing debt settlement?
Review the pros and cons first.
Pros:
Cons:
So, is debt settlement right for you?
It might be if youre facing a large amount of debt and cant make minimum payments.
Just know your credit will take a hit, and there are tax implications to consider.
Pros and Cons of Debt Consolidation
Thinking debt consolidation might be a better fit for your needs?
Check out the advantages and disadvantages of taking this route.
Consider whether you’re free to manage a single monthly payment or need a major reduction in debt.
Dont forget about the impact on your credit and any long-term financial or tax implication.
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.