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How do debt consolidators eliminate debt?

In: Debt Counselors and Consolidation [Edit categories]

Answer:

Debt consolidation companies do not eliminate debt. Do not confuse this with debt settlement. Consolidation companies simply merge all of your debts together into one payment a month that you make to them and sometimes lower interest rates.

Debt settlement companies, however, negotiate directly with your creditors/collection agencies to settle debts for a lower, agreed upon, lump sum. This in turn gets you out of debt quicker.

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First answer by Mojo562j2. Last edit by Mojo562j2. Contributor trust: 2 [recommend contributor ]. Question popularity: 2 [recommend question].

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