When you are looking for debt assistance, there are two options that you have and these are debt consolidation vs. debt negotiation. You can use either of the two when you feel that you are becoming overwhelmed with all the monthly bills that you are getting and you feel that you need some kind of outside help to sort out your debt issues.

In debt consolidation you have prearranged debt repayment plans. This can be with the credit card company or the collection companies. This is one of the better options because in debt consolidation vs. debt negotiation when you sign up with a debt consolidation company you have a lower overall payment. This is based on a lower interest rate as well. This interest rate will be arranged with the creditor. The payment that you will be making will be lower than what you would initially have paid, so in the long run you are actually saving money for yourself and paying off your debt in time.

The great benefit of debt consolidation vs. debt negotiation is that with debt consolidation, you won’t be hassled by the company or the collection agent to make your payment. Remember that this is just like any other payment, as long as you make the payment, they won’t harass you, the minute you stop that is when they will start bothering you about making the payments in time. So to avoid any harassment, you should always make your payments on time all the time.

The only down side about debt consolidation vs. debt negotiation is that with debt consolidation, you have to cancel all your credit cards. They also charge you a nominal fee for their services. So you end up paying an amount that won’t be going towards paying off your debts at all. But if you look at the bright side it’s only a small price to pay for the quick and speedy repayment of you debts. When you are thinking debt consolidation vs. debt negotiation, you should go with debt consolidation as if you have an especially high interest rate or if your debts are high; this is a great way to pay them all off without having to worry as to how you would pay them.

The one benefit of debt consolidation vs. debt negotiation is that with debt negotiation you stop making any payments whatsoever to your creditors. What they do is that they take the money from you directly and put it in an account for the repayment or you can put it into an account yourself. The downside to debt negotiation is that it tends to lower your credit score when you use the program to help you clear all your debts.