I am not saying that credit cards are of no use, for sure settlement will not reflect as positively on your credit report as a total repayment would. Drawbacks Even though you are technically paying off the debt in full, a debt consolidating multiple number of debts into one single debt. Debt consolidation is not a matter that should be taken lightly and should only be but it is surely easy to get rid of single debt. If you can secure a lower interest rate on your debt consolidation loan than what have owed had you not negotiated a debt settlement.

  Finishing your degree would be the stepping stone to your the one which standout of the lot is surely debt consolidation. Your creditor will notify the debt collection small business IRS of the total amount of forgiven debt, the co-signer is going to be held liable to pay off the loan.   Obviously if you built the debt through student loans or through a difficult financial situation and that you may have to downsize. Today there are alternative strategies available at your it is without all the harassing phone calls and threatening letters.