debt consolidation is the process of combining multiple debts under one account
New York, NY (PRWEB) August 17, 2017
Debt consolidation and debt restructuring are two separate debt repayment programs and National Debt Relief shares the difference between the two. The article titled “Debt Consolidation Vs. Debt Restructuring” and released August 14, 2017 takes a look at the distinct differences between the two to help consumers make better and informed decisions.
The article starts off by pointing out that there are a number of repayment programs consumers can deal with their debt payments. With this, two of the most popular options are debt consolidation and debt restructuring. However, the problem is that a lot of people interchange the two.
The article explains that debt consolidation is the process of combining multiple debts under one account. As consumers combine everything under one payment, they also get to enjoy a lower monthly payment along the way. This can be undertaken with a debt consolidation loans, balance transfer credit cards, and debt settlement.
Debt restructuring, on the other hand is when consumers renegotiate their debt payments with the lenders. The debt holders themselves reach out to their lenders and look for ways to make more manageable payments on their loan. This program usually precedes a bankruptcy proceedings as consumers have a hard time meeting their financial responsibilities.
The article explains that one of the main differences between the two is the number of debts being entered into the program. Debt consolidation usually has more than one account being consolidated. For debt restructuring, though there is nothing to stop consumers from negotiating more than one account, they usually do it one at a time.
To read the full article, click https://www.nationaldebtrelief.com/debt-consolidation-debt-restructuring/