Debt settlement is different form debt consolidation
Debt consoldiation programs grant loans to the debtor in order to pay off all remaining debts, while, usually, high interest is charged on the loan in addition to various fees. In certain cases the debtor may even be required to pay interest to the creditor and as a result, the principal debt balance remains equal. Debt settlement, on the contrary, negotiates with the creditors and an agreement is reached in which the debt will either be eliminated or a certain fixed amount remains to be paid off.
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