Debt Adjustment vs. Consolidation

By: Lucas Jones

What is the difference between the two?

Debt Adjustment:

  • Form of debt relief that allows an organization or single body to repay a debt.
  • Typically over a longer time to repay.
  • Smaller payment amounts than the lender originally agreed upon.

Debt Consolidation:

  • Form of debt refinancing that takes out one loan to pay off many others.
  • This commonly refers to a personal finance process of individuals addressing high consumer debt.
  • Can secure a lower interest rate to the entire debt load.

What are the three credit reporting agencies?



Trans Union

Why is it important to get a report from them?

  • Your credit report is the sole source of information for your credit score.
  • If all three reports from each credit agency are identical, you are more likely to be able to receive credit cards from banks, or employers check credit as a part of the application process.