Want to know the difference between debt settlement and debt consolidation? In this article we compare debt settlement vs. debt consolidation, so you know what each is for, and when you should consider one over the other.

Let’s start with Debt Settlement.

Debt settlement is a program where you can settle your debts for less than what you owe.

How the process works is you enroll into a debt settlement program, they use their top negotiators to negotiate down your debts on your behalf so that way you can pay less.

Every debt settlement company is a little bit different, so make sure that you talk with your debt expert.

Do some comparisons to make sure it’s the right program for you.

Debt settlement could be very beneficial to people who are financial hardship due to a job loss, an unexpected medical bill, or maybe they just can’t afford to pay what they owe anymore.

In a debt settlement program, your credit may be impacted negatively.

However, under the FCRA, the Fair Credit Reporting Act, that your creditors have to report your accounts accurately, and that means every settlement we help you obtain will help your credit score go up.

Now, let’s go over Debt Consolidation.

Debt consolidation is when you take your old existing debt amounts that have high-interest payments and then you transfer the balances onto a bigger balance of a credit card or a loan with a lower interest rate to lower your monthly payments.

This is great if you wanna pay off your debts over a certain amount of time and you’re able to do so.

The dangers are a lot of people just raise their standard of living artificially through debt because now they have their old credit cards and loans that have zero balances and then they start using those as well, and then they end up with two payments and they’re in a worse situation than they were before.

If you would like more information on debt settlement or debt relief, visit us on our website at Alleviatefinancial.com.

How Debt Relief and Debt Settlement Work?

Debt Relief and Debt Settlement is a negotiated agreement by which a creditor accepts less than the total amount owed to legally satisfy a debt.

Settlement programs typically last 24-48 months and are highly dependent on factors such as delinquency, creditor policies, the number of accounts, and the total dollar amount of the debt.

Debt settlement services have existed in some form since the advent of debt itself.

The modern industry has seen significant growth in the 21st century, largely due to the easing of lending requirements by financial institutions.

In addition, today’s borrowers are taking on significantly more debt than their parents had at a similar stage in life and are subsequently paying off that debt at a slower rate.


These large debt loads and slower payoffs, coupled with today’s high-interest rates, mean that without intervention many borrowers could be paying off these loans for decades.

While there are a multitude of interwoven causes for these trends, industry experts point to increased access to larger amounts of credit coupled with a reduction in the social stigma of being in debt.

Debt Settlement Calculator | Alleviate Financial

Schedule Your Free Debt Analysis

Potential clients speak with a certified debt specialist regarding their financial situation.

The debt specialist evaluates the caller’s financial situation and suggests the optimal debt relief strategy.

Clients choosing to enroll in our debt relief program are then guided through the enrollment process.

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Enroll into Our Debt Relief Program

Signed enrollment documents are processed and the new client receives a call from our team of dedicated account managers to welcome them to the program.

Account managers are available 24/7 and remain in active communication with clients throughout the program.

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Negotiations & Settlement

Our talented negotiations team begins working on client accounts immediately.

When settlement offers are received they are first reviewed for accuracy and then presented to clients for approval.

This process repeats until all client accounts have been settled.

Debts Resolved!

Your debts will be resolved in a few short years or even months so you can have a new beginning financially.