Debt Consolidation Help

If you're experiencing financial difficulties due to credit card debt, medical bills, lines of credit or other high interest loans, there are ways to get your finances back on track without filing for bankruptcy.

Debt Consolidation vs. Debt Settlement:
One of the more familiar terms we hear when we think about eliminating our financial woes is debt consolidation. While a legitimate option for some, true debt consolidation usually requires home ownership to be of real benefit to the consumer - and even then requires putting your home at risk. For most people, debt settlement is in fact a better alternative.

Debt Consolidation		Debt Settlement
Involves combining various unsecured debts into a single, lower interest loan. This helps to 'reduce' your debt by allowing you to pay down more of your balance and less interest each month, but the actual principle owed remains the same.		Involves using a third party to work directly with your creditors to reduce actual debt. Unlike consolidation, which simply transfers your debts over to a loan with better interest, debt settlement actually reduces the total amount of principle you owe.

Simply put, debt consolidation is little more than a 'better' loan used to pay off your existing debts, whereas settlement actually reduces the amount of money you owe your creditors. Both are better alternatives in the long run than bankruptcy, but each approaches debt reduction differently.

If you are in the position to get a low interest loan, consolidating can be a simple way to lower your interest with slightly less impact on your credit rating than debt settlement, but it's a longer route to financial freedom, and not a viable option for most people in financial arrears.

If like most people, you're having a hard time keeping up with payments on credit card debt and other high interest loans, debt settlement is likely your best solution. It allows you to lower your monthly payments right away, does not require homeownership, and ends creditor harassment quickly.

If you're looking for a solution immediately, we recommend contacting AFS using the form to the right to get an estimate of how much they can reduce your debt. (Most people using their debt settlement services can expect to be debt free in 3 years or less, with monthly payments cut in half.)

If you'd like to speak with a debt specialist about your personal situation, American Financial Service has generously offered to provide free telephone consultations to our visitors.

Fill in the form above and a counselor will contact you to discuss how to deal with your personal situation. It's quick and painless way to see how much you can save, and you're under no obligation to utilize their debt settlement services.

To read more about credit card consolidation, tips for budgeting your finances and other related information, please visit our learning sections through the links below.