A debt settlement deal is typically done by a third-party firm that negotiates with a creditor or a lending agency for the borrower to pay the creditor a lump sum amount that is usually less than what the borrower originally owes.
Helps you quickly fix your financial problems
Some lenders might not be open to negotiating your debt
Might be more costly in comparison to paying the actual amount that you owe
Debt consolidation is the process of taking out a bigger loan to pay off your other smaller loans. This is usually done with a more affordable payment option or with reasonable interest rates and to pay off a number of other creditors.
Does not entail collateral
More achievable payment opportunities
Prompt and upfront method
Could affect your credit ranking
Will result to longer and more extended payment terms
Taking out a personal loan is to borrow funds from banks, lending agencies, and other firms or individuals offering to lend money with interest.
A quicker way of settling your debts
Feasible for a short-term solution to paying off debt
Could take long to be approved
May have higher interest rates