Is debt consolidation the same as debt settlement?

No, debt consolidation and debt settlement are not the same. Debt consolidation involves combining multiple debts into one single loan with a lower interest rate. This allows individuals to simplify their debt payments and potentially save on interest charges. On the other hand, debt settlement involves negotiating with creditors to reduce the total amount owed. Debt settlement typically requires individuals to make lump-sum payments to the creditors, often at a reduced amount, to settle the debt. While both approaches aim to help individuals manage their debt, they differ in method. Debt consolidation focuses on restructuring the debt while debt settlement aims to reduce the overall amount owed. It is essential to understand the distinctions and choose the right option based on individual financial circumstances.