Both debt settlement and debt management offer significant financial benefits to consumers seeking debt relief solutions.  Debt management makes sense to consumers who are concerned with damaging their credit report now.  Like consumer credit counseling, debt management is the process of renegotiating the interest rates of credit cards and unsecured debt.  On the other hand, debt settlement is the process of negotiating the payoff for credit cards and unsecured debt.  Typically credit card debt settlement will take 12 to 24 months whereas debt management will likely take 36 to 48 months.

Most debt management programs are not for profit companies that appoint a certified counselor to evaluate your income, expenses and debts.  After assessing your debt to income ratio, the counselor will offer a solution to lower your monthly expenses for credit cards.  Keep in mind that your creditors must agree to lowering the interest rate on your credit cards for debt management to work.

Watch Video Debt Management vs. Settlement

Consider debt settlement programs if you want a quick resolution than debt management programs offer.  If you set up a debt settlement plan, then you will make payments monthly into an escrow account set up by the debt settlement company until enough money is deposited into your account to negotiate a settlement with your creditors.

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