A lot of authors have dealt with the issue of debt consolidation versus debt settlement in the past, and it's pretty clear across the board that using a debt consolidation loan that is secured by your home is the better debt resolution product if you have that option (and this is coming from a debt settlement company). It doesn't affect your credit negatively, you save money, and the likelihood of legal action and thus non-settlement, is lowered since the time frame is reduced from a typical program.

But what if you can't qualify for a loan that will consolidate all of your credit cards?  A good option to consider is to use the loan to settle your debts.

How is this possible?

Once you have been approved for a loan, sign up for a debt settlement service, and then assuming we have negotiated the balances down, settle the debt with the money from your consolidation loan. When successful, this process takes as little as 4 to 12 months to complete, and you can save as much as 50 percent off your balance. (Please click here for full details about this savings estimate). Moreover, the likelihood of legal action and thus non-settlement, is lowered since the time frame Moreover, the likelihood of legal action is lowered since the time frame to accumulate funds is lowered, and since you won't need to take a debt consolidation loan for the full balance, this may lower the likelihood of foreclosure of your home since your monthly payment won't be as high.

For the more financially savvy consumers out there that have equity in their homes, good enough credit to take advantage of it, and still enough of a hardship to justify settling, doing debt settlement with a debt consolidation loan is the good choice.