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Debt consolidation vs. debt settlement: Which is better?

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Debt consolidation and debt settlement may both be viable options for debt relief. 

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Credit card debt can be costly. Between interest rates that average over 20% and payment structures that do little to address your principal balance, paying your credit card debt off could involve thousands of dollars in interest and decades of monthly payments. But, your credit card debt doesn’t have to cost you nearly as much money, nor take as much time to pay off. 

Leading debt relief options may offer significant interest savings and even reduce your principal balance. And, debt relief services could shave years off of your payoff timeline. Debt consolidation and debt settlement are two popular debt relief options that may be able to do just that. But which is better? That’s what we will break down below.

Talk to a debt relief expert now to find out how much relief you could realize

Debt consolidation vs. debt settlement: Which is better?

Debt consolidation and debt settlement are both viable options. And whether debt consolidation or settlement are better for you depends on your financial situation. But before you choose one or the other, it’s important that you know how each works. 

  • Debt consolidation: Debt consolidation is a process that consolidates multiple high interest debts into one account, presumably with a lower overall interest rate. This can be done through a debt consolidation loan (use one loan to pay off all of your credit cards) or as a service provided by a debt consolidation company (you send one monthly payment to the debt consolidation company and they send individual payments to your lenders on your behalf following interest rate negotiations). In either case, debt consolidation has the potential to offer significant interest savings, reduce your overall monthly payment obligation and get you out of debt faster than you would on your own if you just made minimum payments. 
  • Debt settlement: Debt settlement is a service through which expert negotiators attempt to negotiate your principal balance down. This process involves foregoing payments to your credit card companies and saving money for a settlement that’s later negotiated by an expert. Once complete, your debts will usually be reported as “settled for a lesser amount,” rather than “paid as agreed.” As such, debt settlement could have a significant impact on your credit score. Nonetheless, these programs are a valuable option for certain borrowers.   

Find out how much money you could save with a debt relief service now

When debt consolidation is better

“When your debt is a manageable amount and you’re able to make regular payments, it’s worth considering consolidation vs settlement,” explains Lamine Zarrad, CEO and founder of the credit-building tool, StellarFi. There are a couple of reasons that’s the case: 

  • Savings through interest reduction: Debt consolidation has no impact on your principal balance. Instead, your savings are usually created through the reduction of interest and implementation of a fixed payment plan (rather than variable payments based on your balance as is the case with credit cards). This may not lead to as much relief as a debt settlement service that negotiates away a portion of your principal balance but is generally fitting if you can afford your minimum payments. 
  • Quality loans often require good credit: If you choose the debt consolidation loan option, you’ll likely need a good credit score and positive borrower profile to access the best rates and terms. That may not be the case if you can’t afford to make your minimum payments, but it could be if you make your payments consistently. Though, good credit isn’t necessary if you choose the debt consolidation service option. 

In either case, debt consolidation often leads to interest savings and more manageable monthly payments. And, since debt consolidation loans and programs typically come with a fixed payment plan and lower interest rates, you may be able to get out of debt faster while making lower total monthly payments – providing relief in terms of time and money.    

When debt settlement is better

“Debt settlement can be seen as the last alternative for bankruptcy when you’re much further down the road,” says Zarrad. 

One of the reasons debt settlement is usually the better option if you can’t afford your credit card payments is because these programs may provide a significant level of relief. Debt settlement services attempt to negotiate a meaningful portion of your credit card balances away – which can make a sizable difference in your minimum payments. 

Also, if you’re missing payments, it’s unlikely that you’ll qualify for a debt consolidation loan. Moreover, if you’re facing financial difficulties, your debt settlement provider may be able to use your financial hardship to negotiate the best possible settlement. 

On the other hand, it’s important to weigh the pros and cons before you sign up for this type of service. Debt settlement usually damages credit scores. Though, you may be able to rebuild your score once your debts are settled, that process could take a few years. 

The bottom line

Debt consolidation and debt settlement are both effective ways to eliminate credit card debt. The better option for you depends on your financial situation. If you can make your minimum payments each month, but don’t see a way out of debt anytime soon, debt consolidation will likely be fitting. If you’re struggling to make your minimum payments, debt settlement may be your better option. In any case, you should reach out to a debt relief expert now to save time and money as you pay off your credit card debt



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Israel airstrikes rock parts of Lebanon as Hezbollah launch rockets at air base near Haifa

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The escalating fighting between Israel and Hezbollah continued Saturday as both sides traded strikes as the war in Gaza nears one year.

The Israel Defense Forces said its air force struck Hezbollah fighters inside a mosque in southern Lebanon that they said was used as a command center to “plan and execute terrorist attacks against IDF troops and the State of Israel.”

The mosque was adjacent to Salah Ghandour Hospital in the town of Bint Jbeil. The hospital said in a statement that Israeli forces had shelled it after being warned to evacuate. The shelling “resulted in nine members of the medical and nursing staff being injured, most of them seriously,” while most of the medical staff were evacuated. On Thursday, the World Health Organization said 28 health workers in Lebanon had been killed in the past 24 hours.

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A man photographs the rubble of a building leveled by an Israeli airstrike that targeted Beirut’s southern suburbs.

ANWAR AMRO/AFP via Getty Images


At the same time, 12 Israeli airstrikes hit Beirut’s southern suburbs, including one that badly damaged a large hall Hezbollah used to hold ceremonies, Lebanon’s state news agency said.

Later in the day, more strikes hit the area, from which tens of thousands of people have fled over the past two weeks.

Israeli airstrikes also hit areas in southern and eastern Lebanon, according to state media. At least six people were killed, according to NNA.

Meanwhile, Hezbollah said it launched a series of rockets at an Israeli air base near Haifa, about 30 miles from the Lebanese border. Israeli police said fragments of interceptors fell in several sites but no injuries were reported, according to the Associated Press.

Israel has sharply expanded its strikes on Lebanon in recent weeks after nearly a year of exchanging fire with the Iran-backed Hezbollah — long designated a terrorist organization by the U.S., Israel and many other nations. The IDF has been carrying out nightly bombardment of Beirut’s once densely populated southern suburbs, a stronghold of Hezbollah. Overnight, a military spokesman issued three alerts for residents there to evacuate.

Israeli airstrikes on southern Lebanon continue
A view of the completely destroyed residential buildings after the Israeli army carried out airstrikes on the Dahiyeh area south of the Lebanese capital Beirut.

Houssam Shbaro/Anadolu via Getty Images


Nearly a week of Israeli ground operations in southern Lebanon, near Israel’s northern border, and two weeks of airstrikes in that region and in southern Beirut — both Hezbollah strongholds — had killed more than 2,000 people, the health ministry said. More than 1 million people have been driven from their homes, including tens of thousands under Israel evacuation orders in almost 100 towns and villages near the border.

Hezbollah started launching those attacks in support of its ideological ally Hamas, which is also backed by Iran, the day after Hamas sparked the ongoing war in Gaza with its Oct. 7, 2023 terrorist attack on Israel. The IDF says Hezbollah militants have fired over 10,000 rockets across the border since Oct. 8, 2023. The vast majority of them have been intercepted by Israel’s advanced missile defense systems.

Israel conducts more ground raids

The Israeli military said on Saturday its special forces were carrying out ground raids against Hezbollah infrastructure in southern Lebanon, destroying missiles, launchpads, watchtowers and weapons storage facilities. The military said troops also dismantled tunnel shafts that Hezbollah used to approach the Israeli border.

Some 1.2 million people have been driven from their homes since Israel escalated its strikes in late September aiming to cripple Hezbollah and push it away from the countries’ shared border. On Tuesday, Israel launched what it calls a limited ground operation into southern Lebanon.

Nine Israeli troops have been killed in close fighting in the area in the past few days, which is saturated with arms and explosives, the military said.

Americans attempt to leave Lebanon

The U.S. government has warned Americans not to travel to Lebanon since mid-September and urged any citizens in the country to leave via commercial travel routes. As of Friday night, the U.S. State Department has assisted approximately 500 U.S. citizens, permanent residents and their families to leave Lebanon on flights organized by the agency.

Other nations are also working to evacuate their residents from Lebanon. Germany has evacuated 460 citizens on German military flights, while a Dutch military transport plane carried more than 100 citizens out of Lebanon. There were also citizens of Belgium, Finland and Ireland who were repatriated on that flight.

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A military aircraft, the Multi Role Tanker Transport Aircraft (MRTT), departs from Eindhoven Air Force Base for Beirut to evacuate Dutch people who want to leave Lebanon.

ROB ENGELAAR/ANP/AFP via Getty Images


“It’s great that these people are safely back in the Netherlands. These have been tense times for them,” Christiaan Rebergen, secretary-general of the foreign ministry, said after they landed Friday.

Fighting ongoing in Gaza

Palestinian medical officials say Israeli strikes in northern and central Gaza early Saturday have killed at least nine people, including two children.

One strike hit a group of people in the northern town of Beit Hanoun, killing at least five people, including two children, according to the Health Ministry’s Ambulance and Emergency service.

Another strike hit a house in the northern part of Nuseirat refugee camp, killing at least four people, the Awda hospital said. The strike also left a number of wounded people, it said.

The Israeli military did not have any immediate comment on the strikes but has long accused Hamas of operating from within civilian areas.

Earlier in the day, the Israeli military had warned residents in parts of central Gaza to evacuate, saying its forces would soon operate there in response to Palestinian militants.

The warnings cover areas along a strategic corridor in central Gaza, which was at the heart of obstacles to a ceasefire deal earlier this summer. The military warned Palestinians in areas of Nuseirat and Bureij refugee camps, located along the Netzarim corridor, to evacuate to an along Gaza’s shore called Muwasi, which the military has designated a humanitarian zone. It’s unclear how many Palestinians are currently living in the areas affected by the order, parts of which were evacuated previously.

Almost 42,000 Palestinians have been killed in Gaza during the almost year-long war, according to the Palestinian Health Ministry, which does not differentiate between civilian and militant deaths.



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1-month-old twins who died with mother believed to be the youngest-known Hurricane Helene victims

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Month-old twin boys are believed to be the youngest known victims of Hurricane Helene. The boys died alongside their mother last week when a large tree fell through the roof of their home in Thomson, Georgia.

Obie Williams, grandfather of the twins, said he could hear babies crying and branches battering the windows when he spoke with his daughter, Kobe Williams, 27, on the phone last week as the storm tore through Georgia.

The single mother had been sitting in bed holding sons Khyzier and Khazmir and chatting on the phone with various family members while the storm raged outside.

Hurricane Helene-Georgia Deaths
This undated photo combo shows from left, Kobe Williams, and her twin sons Khazmir Williams and Khyzier Williams who were killed in their home in Thomson, Ga., by a falling tree during Hurricane Helene on Monday, Sept. 30, 2024. (Obie Lee Williams via AP)

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Kobe’s mother, Mary Jones, was staying with her daughter, helping her take care of the babies. She was on the other side of the trailer home when she heard a loud crash as a tree fell through the roof of her daughter’s bedroom.

“Kobe, Kobe, answer me, please,” Jones cried out in desperation, but she received no response.

Kobe and the twins were found dead.

“I’d seen pictures when they were born and pictures every day since, but I hadn’t made it out there yet to meet them,” Obie Williams told The Associated Press days after the storm ravaged eastern Georgia. “Now I’ll never get to meet my grandsons. It’s devastating.”

The babies, born Aug. 20, are the youngest known victims of a storm that had claimed more than 200 lives across Florida, Georgia, Tennessee, Virginia and the Carolinas. Among the other young victims are a 7-year-old girl and a 4-year-old boy from about 50 miles (80 kilometers) south in Washington County, Georgia.

“She was so excited to be a mother of those beautiful twin boys,” said Chiquita Jones-Hampton, Kobe’ Jones’ niece. “She was doing such a good job and was so proud to be their mom.”

Jones-Hampton, who considered Kobe a sister, said the family is in shock and heartbroken.

In Obie Williams’ home city of Augusta, 30 miles east of his daughter’s home in Thomson, power lines stretched along the sidewalks, tree branches blocked the roads and utility poles lay cracked and broken. The debris left him trapped in his neighborhood near the South Carolina border for a little over a day after the storm barreled through.

He said one of his sons dodged fallen trees and downed power lines to check on Kobe, and he could barely bear to tell his father what he found.

Many of his 14 other children are still without power in their homes across Georgia. Some have sought refuge in Atlanta, and others have traveled to Augusta to see their father and mourn together, he said.

He described his daughter as a lovable, social and strong woman. She always had a smile and loved to make people laugh, he said.

And she loved to dance, Jones-Hampton said.

“That was my baby,” Williams said. “And everybody loved her.”



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Telecom providers operate emergency communications after Hurricane Helene

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Telecom providers operate emergency communications after Hurricane Helene – CBS News


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When critical infrastructure like utility lines and cell phone towers go down, emergency response teams from telecom providers like AT&T and Verizon step in with an arsenal of equipment ensuring first responders can communicate in a disaster zone. Here’s how that’s helping in the aftermath of Hurricane Helene.

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