Remember meForgot password?
    Log in with Twitter
Press Release

National Debt Relief Pit Debt Reduction and Debt Consolidation against Each Other in Their Most Recent Website Post

>PRWEB.COM Newswire

Los Angeles-Long Beach, CA (PRWEB) June 01, 2013

National Debt Relief, the leading provider of debt settlement services in the country released an interesting article that aims to help consumers choose between two debt relief options.

Hailed as the leading debt relief company in three states (Hawaii, North Dakota and Virginia), the company proved itself as an authority in anything related to debt relief. Cleverly titled, “Debt Reduction Vs. Debt Consolidation - And The Winner Is...” the AFCC (American Fair Credit Council) member pitted the two options against each other. Released on May 21, it presents the pros and cons of both debt solutions.

Beginning with debt consolidation, National Debt Relief proclaims it as the most popular option for consumers who merely wish to consolidate and make debt payments easier to handle. The article defines it as borrowing enough funds to pay all the other debts. The goal of the program is to get a low monthly payment and low interest rate as compared to the current debt situation.

The disadvantage of this program, based on the article, is the fact that it does not really reduce or solve the debt problem. It merely shifts the debt into one loan. It is like transferring 4 small debts into one big debt with a different lender. Not only that, the article claims that there is a possibility that the whole amount will cost the consumer more - since it is stretched over a longer payment period. It is possible to end up paying a higher interest amount.

On the other side of the comparison is the primary service that National Debt Relief offers - debt reduction. Also known as debt settlement, the article hails it as being better than debt consolidation when it comes to providing actual reduction of the current balance - at least for unsecured debts. The whole premise goes for a lower balance so the consumer can get out of debt faster.

However, the article points out that this option will incur damages that is not present in debt consolidation. It can seriously damage the consumer’s credit score. Although it is not as significant as that of bankruptcy, it is still bigger than debt consolidation - which when done correctly will not have an effect at all. Not only that, the qualifications of debt settlement is greater than that of the other option.

In the end, the article hails no winner. Instead, they encourage consumers to dig deep into their financial goals and capabilities to know which among the two is best for their unique debt situation.

National Debt Relief believes that both are effective but they will have to be weighed heavily on the finances of the consumer - not on personal preference.

To read the whole article, visit the website of National Debt Relief. To know more about debt settlement, call 888-330-7885.

Read the full story at