Submitted by : Karen Ford
Anything that is owed to someone else is considered debt.
Some examples of debt that is common could be:




So, now to the question - "Does debt consolidation or debt settlement work?"
NO!
** Debt consolidation
This is basically a loan that combines all your debts into one single payment. This sounds like a good idea but the extent of the loan is extended meaning you’ll stay in debt longer. Also, the low interest rate that looked so appealing at first goes up over time.
** Debt settlement
Debt settlement companies are the seedy underbelly of the financial world. Companies will charge you a fee and then promise to negotiate with your creditors to reduce what you owe. Usually, they just take your money and leave you responsible for your debt.
Bottom line --- Find a reliable, Christian debt counselor who can help you identify core elements for your budget, and then develop a workable debt-repayment plan.