Debt Consolidation Vs Debt Settlement – The Best Options For You Out There

National Debt Relief is a debt relief firm that negotiates with lenders on behalf of customers to reduce their unsecured debt amounts. The company states that consumers who join its debt relief program benefit by reducing their unsecured debt by at least 30%. To prove its effectiveness and reliability, this relief firm has to provide financial statements to back up these claims.

In the present, there are mainly two debt relief programs, debt consolidation vs. debt settlement. Consolidation is considered as a more favorable option because it targets at a single debt which could be a credit card debt or mortgage debt. When debt consolidation is undertaken through a legitimate debt relief network, the total debt of an individual is effectively brought under control. This is because the representatives of the network to gather all debt relief information of a consumer and negotiate with all lenders for a maximum debt elimination.

On the other hand, debt consolidation loan serves consumers with a single monthly payment, which can be used for all their future financial needs. Consumers have the option of choosing either a debt consolidation loan or debt settlement, when they approach a debt relief firm for assistance. With the help of a debt consolidation company, consumers gain convenience in making payments monthly because they are not required to make separate payments for each creditor. Also, there is no need for debt relief companies to compensate its clients for arranging loan payments.

With the introduction of new laws by the federal government, debt relief has become easier. According to new laws, debt relief companies cannot charge upfront fees from its clients until it provides services and reaches a settlement with the creditors. This clearly shows the importance of considering credit cards when negotiating with debtors. Most debt relief companies provide services for free and it may not cost you anything at all. But if you feel that you are being pressured by these companies, then you can easily escape from such situations by hiring a debt relief company and proceed with negotiations on your own.

As soon as you hire a debt relief company, it starts negotiating with your creditors on your behalf. It negotiates with the creditors on your behalf and manages your debts on behalf of you. Now it is easy for you to deal with your creditors because all your calls and queries are taken care of by debt relief companies. These debt relief companies even manage your credit reports and remove embarrassing items in your credit reports. Moreover, it also prevents collection agencies from harassing you anymore. In short, debt consolidation or debt settlement act as a shield for consumers from collection agencies.

However, you should keep one thing in mind debt relief does not solve the problem of debt validation. Debt validation refers to creditor phone calls where they threaten you with legal action and demanding that you pay back what you owe them. If you still refuse to pay them, they will file a complaint against you with the Credit Card Fraud Protection Act or the Fair Debt Collection Practices Act. Under the auspices of this act all those credit card balances, which were previously unauthorized will be removed. So debt relief is not always successful but it is sure to clear all your credit card balances. For more details on debt relief in New Mexico visit