Point-by-Point Benefits of Debt Consolidation and Debt Management Plans
People in debt choose a debt management plan because of it's tremendous economic benefits. They also accomplish their goal of being free of debt in just a few years, because creditors are willing to significantly reduce interest rates. Your debt consolidation program may be able to:
• Reduce or Eliminate Interest
• Reduce or Eliminate Late Charges & Over-Limit Fees
• Reduce Current Monthly Payments
|• Eliminate Creditor Harassment
• Combine Your Bills into a Single, Easy Monthly Payment
• Stop Collectors Calls
Debt Consolidation Plan vs. Debt Settlement
With a debt consolidation plan, you pay back 100% of your debt, but with a huge reduction in interest rates. Interest is commonly reduced by about half or even more of what you are currently paying. You become free of debt in as little as 3 to 5 years.
In debt settlement on the other hand, you pay back an average of 50% of your total debt, plus all additional debt settlement fees as well as accruing fees and interest from the original creditor. This figure is based on your starting balances.
Debt Settlement's usual approach is for you to completely stop paying your creditors. This typically results in a judgment or garnishment against your wages. Just imagine the negative effect that has on your credit report and scores, and the stress it will cause you getting creditor phone calls day and night. The only time debt settlement is a reasonable option is when you already have a lump sum of money available to you. Otherwise, debt consolidation is clearly the way to go!
Phoenix Debt Relief Help Center
2942 North 24th Street, Suite 114
Phoenix, AZ 85016
Metro Phoenix : (602) 223-1700