January 04, 2010 16:22 ET

Debt Consolidation vs. Debt Settlement: A Primer by

With Post-Holiday Consumer Credit Card Debt About to Heat up, Consumer Advocate Explains Debt Relief Options

CHICAGO, IL--(Marketwire - January 4, 2010) - The Christmas shopping season has come and gone. The tree may still be up but that will be coming down soon. With January here, consumer credit card bills will be in the mail in a matter of days. Get ready for sticker shock.

Many consumers find themselves every year getting caught up in the shop-till-you-drop mentality when it comes to buying gifts for family and friends during the holiday shopping season. The problem for consumers is that the credit card bills inevitably find their way into their respective mailboxes and inboxes.

The amount of money spent on holiday shopping can be a sobering realization for many when staring at mind-numbing figures on one's credit card bills. This is the time of year when many consumers begin to wonder about and consider the merits of debt consolidation and debt settlement.

Consumer advocate would like consumers to know and understand the differences and merits of these two debt relief programs.

Debt Consolidation is a fairly straight forward process. This debt relief program involves the combining of multiple monthly debt payments into a single and more manageable monthly debt payment. This new debt payment is lower than the sum of the previous multiple monthly payments.

This is achieved through a combination of lower interest rates, extended payment terms, and/or the taking out of a debt consolidation loan, typically in the form of a home equity loan.

Debt Settlement is a debt relief program that differs greatly from debt consolidation and achieves debt reduction and debt elimination through another method. With this program, a debt settlement firm negotiates on behalf of the consumer in debt with the consumer's creditors in order to obtain a reduction in the total amount of debt that is owed.

Also known as debt negotiation or debt arbitration, the amount of debt that is typically and instantly eliminated through a debt settlement program is in the range of 50%, with possible debt reductions as high as 70%. offers consumers a free debt evaluation which they can take advantage of at the company's website:

Contact Information

  • Contact:

    John Chase
    877-224-2950 x 7016