The Difference Between Debt Relief and Debt Settlement

Debt is a frequently used term in the lending business. It means a sum of money that is owed to the lender by the borrower. However, in the lending practice, there are more concepts that are associated with debt than just the term itself. Out of those, debt relief and debt settlement are two of the important concepts that every borrower must know about. Let’s go through in brief, and see how they are different.

Debt Relief:

Debt relief is also called debt cancelation. Debt relief can mean partial as well as full. Based on the financial situation, the borrower can apply for debt relief to the creditor (financing company). That is basically a negotiation between the two parties. There are two ways a debtor can go for debt relief. The first option is by getting identified as bankrupt, and the second is debt consolidation where all the loans are consolidated into one and the borrower makes payment to one loan than multiple ones.

Debt Settlement:

On the other hand, debt settlement or debt negotiation means paying a portion of the amount owed and getting debt free by the lender. This would be a lump sum payment, and no installment can be allowed. This agreement seems viable to the lender when the borrower is not financially fit to pay the total amount owed. Losing all than losing some is the idea behind debt settlement. This is also a very convenient option for the borrowers who want to see their credit score undamaged. One debt settlement can be done with the concerned lender, and cannot be clubbed like the debt consolidation.

If you are looking for a funding up to $1,000 to pay off your small outstanding debts, you can choose a better option of applying to CashAmericaToday even with a bad credit score. This will be simpler than debt relief or debt settlement.

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We are registered with Utah’s Department of Financial Institution to provide Consumer Credit. If you submit this application via the internet to us, we will receive and process it the same as if you submitted it to us in person thereby making Utah the place of negotiation, execution and performance of all applications and/or agreement. If we approve your application, the funds will be disbursed from our account in Utah. Utah law governing consumer loan agreements may differ from the laws of the state where you reside. Applicant is responsible for complying with all statutory obligations regarding obtaining loans by internet that may exist in their state of residence. This service may or may not be available in your particular state.

CashAmericaToday does not perform any credit checks through the three major credit bureaus Experian, Equifax or TransUnion. We collect required information regarding debtors’ creditworthiness from a third party source.

Approval time depends on the authenticity and verifiability of your documents. You might be requested to provide further information if required. Note that we do not approve all the loan requests. On the basis of state laws and your repayment ability, the terms and rates may vary. Any loan requested on Friday after 6:00 PM EST will be processed on the next business day which is usually Monday- unless it is a holiday.

Should you have any doubts, please call our customer support at (855) 840-5688, Monday-Friday: 8:00 AM to 7:00 PM (EST) or email to

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