Debt Settlement vs. Debt Consolidation

Debt settlement and debt consolidation are not the same.

There are a lot of advertisements for debt consolidation. It may even seem like a good idea – until you take a closer look. At McCarthy Law, our lawyers want you to know all your options and the differences before you make a decision.
Depending on your specific circumstances, debt settlement may be the right solution for your financial problems. We can guide you through the process.

• •Debt Consolidation does not reduce the amount you owe
• •Debt Consolidation creates one payment to a company you never meet with who then had an already established agreement with the credit card companies to allow you to have a reduced interest rate.
• •Debt Consolidation does affect your credit
• •For some clients, bankruptcy may be the answer. An attorney at our firm will help you determine if that is the right option for you.
• •There is no situation in which debt consolidation is the right option. It does not reduce the amount owed, and you could still be sued by credit card companies and banks.