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I just signed up with Campos Chartered Law firm for debt settlement. Are they reputable? because I wanted consolidation and they told me it was consolidation of debt only to find out now it’s settlement.

The use of the word “consolidation” of debt can be very confusing. Consolidation is lumping several debt payments into one but there are several primary ways to accomplish that:

    1. Using home equity in your home to refinance and “consolidate” your debts (means you pay off credit cards and other bills by increasing your mortgage balance).

    2. “Consolidate” your credit card (and similar bills) through a debt management plan which is usually a service offered by a credit counseling agency. They will help you better manage your bills and help lower your interest rates and late fees getting you out of debt typically in 5-7 years.

    3. When you enter a debt settlement program you do “consolidate” your bills into one monthly payment which should be less than the payments you are currently making when you combine them. This is really a more aggressive startegy that will have you debt free in 18-36 months but has more risk to it.

So it’s really a question of what type of plan you originally wanted. Did you intend to enter into a:

1. Debt management plan OR
2. Debt settlement plan

Follow those 2 links to read more and then discuss with the company you signed up with who I have not yet heard of until now. Best of luck to you.