Debt settlement is a negotiated settlement of unsecured debt, such as credit card debt. For example, if you owed $15,000 on a credit card and used the services of Forecast Financial to negotiate a settlement with your credit card company to pay $6,000 instead of $15,000 as settlement in full on the debt, this would be a credit card debt settlement.

Debt consolidation, which also covers unsecured debt, involves consolidating all such debt into one supposedly lower monthly payment. However, the entire amount owed as well as additional interest and/or penalties are still owed.

Consolidate your debts into a single payment? Big deal, you could do this yourself with a roll up plan. Requires your creditors to receive the full balance due with interest. Sponsored by the credit card industry. Doesn't that sound a little suspicious? Damages your credit report. Forget what they say, do the research. It could take years longer than debt settlement, and costs more than twice as much. A valid option if you have a small amount of debt. But again, you can do it yourself. Debt Settlement is a far better option for most situations!