There are several programs to choose from when you need help to get out of debt. However, the terms can be confusing and some people think consumer credit counseling, debt negotiation, and debt settlement are all the same. This is not true and the methods applied in each to erase debt are not the same.
Debt Negotiation
This is the process of leveling with the creditors to work out a plan for settling the amount owed. Debt negotiation efforts result in the debtor paying less than the total amount owed. Also, a new payment plan that will make it easier for you to make payments on the amount owed can be arrived at. You can handle debt negotiation on your own or you can hire a debt negotiation company to help.
Debt settlement
Debt settlement means the creditor has agreed to accept less than the amount you owe as full payment. Also, collectors will have to stop hounding you for the money and no one can sue you over the debt. You can opt for DIY debt settlement or professional debt settlement. DIY debt settlement is much easier and less costly. Thus, it is the path recommended for everyone.