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Settlement | Consolidation | Personal Loans

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Settlement

In a settlement process, a third-party agency discusses with a creditor and reconciles the entire debt through a lump sum amount that is normally less than the outstanding balance.

  • Pros

  • A fast solution to resolving your debt issues

  • A fast solution to resolving your debt issues

  • Cons

  • Some creditors might not be open about settling

  • Usually results in higher interest rates

Consolidation

Debt consolidation is taking out a big loan in order to pay off all your other smaller loans. This method of resolving debt usually entails lesser or more attainable installment terms.

  • Pros

  • Does not require collateral or downpayment

  • Usually involves more flexible payment option

  • An easy and simple resolution to settling debt

  • Cons

  • Can affect your credit score

  • May result in lengthier payment terms

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Personal Loans (4)

Personal Loans

A personal loan is borrowing funds from financial institutions, friends, or family and paying it off with interest. Personal loans may or may not require collateral and may vary in interest premiums depending on the organization lending you money.

  • Pros

  • A fast and easy way to becoming debt-free

  • Cons

  • Slow turnaround process time

  • May have higher interest rates