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There are pros and cons to every situation. This also holds true for deciding whether to use a debt settlement company or debt consolidation company to help you manage your unsecured debt. First of all, to use a debt consolidation agency you have to own your own residence to be eligible to use their services. Debt consolidation is basically a home equity loan. This of course is going to make your mortgage payment more. You may also need to have a minimum FICO score, and a steady income of a certain amount.

Debt consolidation can help you lower your monthly payments and reduce the interest rates on the unsecured debt that got you in trouble in the first place. You only have to make one payment a monthly and you can now write off the interest of those unsecured debts. It is going to take longer to pay off the bills though, you spend more money in interest and you run the chance that your could lose your house if you miss payments.

Debt settlement on the other hand is a totally different option. First though be aware that debt settlement companies only work with people who owe more than a certain amount (usually the minimum is between $7,500 and $10,000). Look for a reputable debt settlement company. Ask friends and family, check with the Better Business Bureau etc. Make sure the company has been in business for a while and has no claims against it. Also make sure they have a good rate of success with negating other peoples settlements.

Settlement can reduce the amount you owe and actually improve your relationship with your creditors. It allows you to pay off your debt quicker (as long as you make your payments). It also actually improves your credit score in the long run.

Finally, by researching and then comparing as much debit settlement providers, borrowers will be able to identify the agency that meet your financial situation properly, plus the cheapest interest rate the market is offering. For example, read our last debt management service review: Debt Help 101 Review.

Nonetheless, it's advisable working with a seasoned and reliable debit counselor before arrive to any conclusion, this way you save time through specialized advise & money by getting the best results in a short span of time.

H. Milla is editor of the Reputable Debt Settlement website – visit and see his best rated debt settlement company recommendation.

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Tags: debt management, debt relief, debt settlement, settling debts