Debt Consolidation

Debt Consolidation is a widely-used term to describe debt repayment plans* that allow you to combine your monthly payments to your creditors into one monthly payment, often combined with lower interest rates and other creditor benefits, to get you out of debt as quickly as possible.

There are really two types of debt consolidation plans available in order to provide these benefits – a Debt Management Plan or a Settlement Plan. Both plans feature the benefits of a combined monthly payment, but the way they reduce your debt is quite a bit different.

So which plan is right for you?

Determining which plan is right for you really depends on your specific situation including the type of debt you have, your income and ability to make consistent payments, and what you agree is affordable.

Within this guide, we’ll walk you through your options so that you can understand which path works best for you. We invite you to explore both programs and learn how they work, who they are designed for, and what are the pros and cons of each.