One fixed monthly payment.

Client pays back more than the original debt based upon principle and interest.

Obtaining new credit while on a credit counseling program is difficult, if not impossible.

Time in which to become debt free is usually 60 months or longer.

Creditor dictates all terms in the program i.e. monthly payment, length of time in the program, interest paid, etc.

Credit report will indicate program participation for up to seven years; potential lenders view this unfavorably.

Creditor sponsored approach in which the creditor dictates the payment levels.

Fixed monthly payment, many times less than what the client was paying before.

Including fees, most debt is settled for 40 to 60% of the balance at the time of settlement.

Obtaining new credit while on a debt negotiation program is difficult, if not impossible.

Client can become debt free in 12 to 48 months.

Creditors react differently, sometimes favorably, sometime unpredictably but the end result is most all will settle.

Debt Negotiation will have a negative impact on your credit score, but once the program is complete and your outstanding debt is reduced to zero, you will begin to see an overall improvement in your credit score.

Consumer advocate program in which payment levels are dictated by the client’s ability to pay.

Most immediate solution for retiring unsecured debt.

By combining multiple monthly payments into one, you can usually achieve a much lower monthly cost.

Creates new and potentially long-term debt by converting existing unsecured debt into new secured debt.

Initial cost for a consolidation loan to pay off unsecured debt will take many years to overcome.

Bankruptcy may or may not immediately wipe out your debt, based upon which type of bankruptcy you qualify for (Chapter 13 Bankruptcy or Chapter 7 Bankruptcy).

After going through a bankruptcy many find it difficult to obtain new credit initially, which if approved, may only be available to you at higher interest rates.

In some extreme circumstances, it is possible to lose your home, car and other financial assets.

Bankruptcy can severely impact your credit, where borrowing money or obtaining credit can be difficult for a period of years.

Bankruptcy can reflect on your credit report for up to ten years or longer (if filing a Chapter 13).