Key Elements of Our Debt Solution

Consolidating debt with a personal loan and our service are two options for resolving debt. Consumers use these debt-reduction techniques because they save money and eliminate hassles of dealing with numerous creditors. However, our service differs from debt consolidation with a personal loan because we can eliminate a portion of your total debt and have you debt-free in 12 to 36 months.

Our service helps consumers pay off debt according to their specific financial situation. Credit Solutions works with creditors to reduce the total credit card debt balance. You then pay the settled amount to satisfy the account in full.

Debt consolidation with a personal loan allows consumers to pay off high- interest debts with a low-interest unsecured loan. Consumers obtain the loan, pay off creditors with the proceeds and then make one payment per month to the lender. Debt consolidation does not reduce the debt principal, unlike our service that decreases the amount consumers need to pay off creditors. On the contrary, consolidation simply transfers the debts to one loan and to one creditor.

Debt Consolidation Comparison

The following list explains three key elements of our service and compares those elements to debt consolidation with a personal loan:

Reduced Debt vs. Reduced Interest Rate

1. Payments with our service occur once the consumer saves up enough money to pay off a specific debt balance. Then, through discussions with creditors, we lower the outstanding balance. Consumers pay off initial debts at a reduced rate. With debt consolidation, consumers pay the entire debt balance plus interest on the personal loan.

No Credit Check vs. Consolidation Approval Process

2. Approval to enroll in our service program involves no credit check or upfront fees. Consumers save up and set aside money to build a settlement fund, and when they're ready, they use the money to pay off the reduced- debt balance. Personal loan for debt consolidation requires consumers to seek approval by a lender. This approval process involves credit checks, which can lead to high interest rates.

Reduced Debt Costs vs. Debt and Interest Consolidation

3. Costs levied on the consumers during our service derive from the level of savings secured on the consumer's behalf. If we worked debt reduction, then we receive a percentage of the reduced-debt amount. This method provides a win-win situation for both the consumer and us. And, it ensures we work for you and not the creditors. Debt consolidation using a personal loan often requires consumers to pay closing costs and additional fees to the lender. Consumers also pay high interest rates carried by the unsecured loan.

Our service and debt consolidation offer debt relief for consumers, but the listed differences point out a big discrepancy in the consumer's cost. Our service saves more money and reduces debt faster.

Author Bio: Scott Sumerford has several years of experience working in the financial industry and has written a myriad of articles on various financial matters. He graduated from the University of Texas at Arlington where he worked as a writing center tutor and contributed to the university's newspaper, The Shorthorn. Read more about how Credit Solutions offers viable alternatives to debt consolidation.

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