debt consolidation & debt negotiation

debt consolidation & debt negotiation

It is very important that understand the difference among:  It is very important to understand the difference between:

1.  Debt consolidation.

2.  Debt Negotiation.

The consolidation and the negotiation of debts they have their advantages and inconvenient.  The consolidation and debt negotiation have their advantages and disadvantages.  To see the advantages of the consolidation of debts punctures here and for see the advantages of the negotiation of debts punctures here.  To see the advantages of debt consolidation click wounds and see the benefits of debt negotiation, click wounds.

It compared to the consolidation of debts, the negotiation can seem profitable, since really you negotiate with the creditors for have not that to pay part of the money that had lent you and to cancel it as evil debt.  Compared to debt consolidation, negotiation may seem advantageous, because it really negotiate with creditors to avoid having to pie part of the money you had paid and partition ace bad debt.

You imagine you that Pepe asked lent to a bank 1000€.  Pepe Imagine to bank borrowed € 1.000.  When the bank asks to Pepe that the money return him Pepe tells him the bank that will give him $400 if forgives him the $600 remaining.  When the bank asks you back Pepe Pepe money tells the bank to  $400 if you will forgive the remaining  $600.  Some times the creditors accept these agreements, since can cost them a lot of effort already times more money to recover the remainders $600.  Sometimes creditors accept these agreements, ace much effort may cost dies money and sometimes recover the remaining $600.

Although this can seem a dream become reality, has many associated objections:  While this may seem like to dream eats true, there you are many drawbacks associated:

1.  It will be shown in your financial record that you carried out a negotiation and that arrived at an agreement in which did not pay all your debt.  Will be displayed in your financial history you took to to negotiation and you eats to they go agreement that did not pie all your debt.  2.  Although it is a better option than having a debt in your record, is very damaging for tí, since any future creditor will see that you have not paid the total quantity of your debt in the past.  Although it is to better option than to debt in your history, is very harmful for you, ace any future creditors will see that you have not paid the full amount of your debt in the past.

When should you elect to consolidate your debt and when to negotiate it?  When should you choose to you consolidate you your debt and when to negotiate?

1.  If you have pending debts with more than one creditor the consolidation of debts agrees you.  If you have outstanding debts to dies than one creditor for you debt consolidation.

2.  If you believe that have too many debts, that there is no way that can pay them and that can arrive at the bankruptcy, in that case the negotiation of debts is the correct solution for you.  If you think you have too much debt, there is not way you can afford them and that you can go into bankruptcy, then debt negotiation is the right solution for you.