Debt Management

Debt negotiation
Debt negotiation is usually done by hiring a third party to negotiate with credit card companies on our behalf. Basically a settlement is made on outstanding balance you have to pay. The company that you hire takes a fixed monthly amount from you. This amount is placed in an account where it adds up. On the other hand, they negotiate on your behalf with your creditors to reduce the interest rate or to write-off the debt as far as possible. Any dealing that you have with them is taken over by the third party you have brought in. Usually the settlement comes down to thirty five to seventy percent of the outstanding balance.
Debt negotiation works because by the time you get someone to negotiate for you, your creditors will have made more money than the original amount lent to you through interest charges. This is how they are at profit too and of course you benefit by paying lesser than the total amount you owe to your creditors. You can of course negotiate directly with your creditors without hiring any third party but in that case you have to be a strong negotiator. Also keep in mind that most debt management firms have strong contacts with the lending institutions and therefore are more likely to succeed in bringing about a settlement.

Debt consolidation
Debt consolidation is a process where you bring in a trustworthy debt consolidation company who will help in assisting you to bring your debt under control. Your debt payments are usually reduced by this. An arrangement is made with your creditors by the debt consolidation company with the aim of reducing the rate of interest charged on the amount borrowed. 
For this arrangement to work, you need to turn over all your outstanding debt account information to the debt consolidation company. Once this is done, the company would create a plan based on your income and expenditure. The purpose is to set aside a certain amount that you could pay to your creditors on monthly basis. Instead of paying to your creditors, you pay to the debt management company. This will help in simplifying your problems because you have to make just one payment each month to the debt management company instead of multiple payments to different creditors

Debt consolidation loans
Basically a debt consolidation loan is where you take a big amount of loan to pay off smaller loans. It helps in reducing the number of payments you have to make every month. A debt consolidation loan can help to simplify matters for you.