Debt Relief vs. Debt Consolidation
Due to inflation and unemployment a lot of people started using credit cards in order to fulfill their basic necessities of life. After using credit cards of certain months they realized that they are getting under more and more loan with every passing day and thus started looking for solutions to get out of credit card loan. Some people did not even have that much cash with them with the use of which they can pay off their credit card bill thus they started taking loan from various different institutions without even thinking that how will they be able to pay the off the loan when the time for paying installment comes. A time came when they got under so much debt from so many different institutions that they couldn’t find any solution to their problems and thus they had to opt for a government grant in order to help them live a stress and debt free life.
Debt relief grant was a service provided by the government to help the citizens of the country get out of severe debt conditions and live a debt free life. In order to get people this grant various debt settlement companies were established to help people in negotiating with the creditors and getting the borrowers the best debt relief program. With the help of these companies debtors were able to pay off their debt in the easiest manner possible. These companies make a debt relief program for the debtors which are made according to the convenience of the borrower of the loan. There are two ways with the help of which the debt settlement company can release the pressure of debt on the debtors.
Debt consolidation is a technique which can be used for those debtors only who owe more than one debt to various different kinds of institutions. In this technique your debt consolidator will pay off all your debts by taking one big debt and thus you will only have to concentrate on one single debt. After all your debts are paid with one debt then your consolidator will make an entire program keeping in mind your ability to pay off the amount per installment. This technique is very helpful as your concentration is solely on one debt and there is also no chance of you forgetting to pay the installment of it. As compared to the situation where you had 3 to 4 different types of loans this situation of having only one loan is much better, convenient and easy.
Debt relief is a situation in which certain amount of loan owed by the debtor is forgiven by the creditors on the request of the debt settlement company. Since the credit card company or other loan providing institutions also wants to get back their money as soon as possible therefore they do not mind reducing certain amount of the loan owed by the debtor. This technique also includes the reduction of interest rate by the company in order to decrease the pressure of high interest rate on the borrower.