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Delancey Street Helps Business Owners Regain Control

Each year 10's of thousands of business owners struggle.

Join The Program

Fill out our contact form. We'll reach out and conduct a thorough assessment of your situation, and how we can help you. Our goal is to understand your situation, and determine if our program is the right for you, and the type of debt you have.

We Work With You

Once we determine our program is right for you, we start working on your behalf. We conduct a thorough evaluation of the type of debts you have, and put together an action plan on what a realistic, and beneficial outcome would look like for each debt.

We Get Results

The final step is the most important, we restructure your debt and put you in a better position than we found you. We work with you to adhere to the new debt restructuring program, and are with you every step of the way to make sure your business is thriving.

Program Results

$450K Merchant Cash Advance

Extra 24 Months

Transformed into a monthly payment, and extended by 2 years, with a 15% reduction in balance.
$110K Merchant Cash Advance

55% Reduction

Transformed into a monthly payment, and extended by 2 years, with a 55% reduction in balance.
$100k Business LOC

50% Redution

Our client had an LOC with a MCA hybrid lender, and saw a drastic reduction in balance.

How We Help

Business debt settlement through Delancey Street involves restructuring your corporate debt, in a manner that allows you to keep your doors open, and results in an increase in cashflow.

Get a affordable plan that works for your business cash flow as a part of the debt settlement process.

Get potential resolutions with Delancey Street in a timely and effective time frame once you enter our debt relief program.

You Have a Powerhouse team of financial and legal experts on your side, advising you on how to interact with predatory creditors.

5 Star Google Rating trusted by 100's of people who are struggling with business debt.

Debt Settlement vs Consolidation

Debt Settlement vs Debt Consolidation: Which Is Better for You?


Getting out of debt is a major financial goal for many people. However, when you have multiple debts from various sources like credit cards, medical bills, personal loans, etc., it can feel overwhelming to even know where to start.Two common strategies people consider for consolidating their debts are debt settlement and debt consolidation loans. But what exactly do these entail, and is one better than the other?debt consolidation vs settlementIn this comprehensive guide, we’ll compare debt settlement vs consolidation—including how they work, costs, credit score impacts, and more—to help you determine which option may be better suited for your unique financial situation.

How Does Debt Consolidation Work?

Debt consolidation entails taking out a new loan to pay off multiple existing debts. This new consolidation loan ideally has more favorable terms, including:

  • Lower interest rate
  • Fixed monthly payments
  • Single payment vs multiple
  • Shorter repayment term

Rather than owing money to various creditors, you now have just one monthly bill to pay back your debt consolidation loan.This can make repayment easier to manage. Plus, the lower interest rate saves you money over the loan term compared to higher-rate debts like credit cards.Common types of debt consolidation loans include:

  • Personal loans – Unsecured loans from banks/online lenders used to pay off high-interest debt
  • Home equity loans/lines of credit – Secured debt using home equity as collateral
  • Balance transfer credit cards – Transferring existing credit card balances to a new card with 0% introductory APR

To qualify for the best rates, you’ll generally need good to excellent credit—a FICO score of 680 or higher. Debt consolidation can be difficult for borrowers with bad credit, but some specialized lenders offer debt consolidation loans tailored to this demographic.

How Does Debt Settlement Work?

Debt settlement, also called debt relief or debt negotiation, takes a different approach to managing debts you’re struggling to repay.The goal is to get your creditors to agree to let you pay a “settlement” amount that’s less than the full balance owed. For example, settling a $10,000 credit card balance for $4,000.You can attempt to negotiate debt settlements directly with creditors yourself. However, many people hire a debt settlement company to act as an intermediary and conduct the negotiations on their behalf.The debt settlement process typically involves:

  1. Stopping payments to creditors
  2. Allowing accounts to become delinquent
  3. Debt settlement company negotiates discounted payoff amount
  4. You pay the settled amount as a lump sum or via installments

Because this damages your credit and shows you’re in financial hardship, it can motivate creditors to settle for less rather than risk nonpayment. However, there’s no guarantee a creditor will accept a settlement offer.debt consolidation pros and cons

Debt Consolidation vs Settlement: What’s the Difference?

While both debt consolidation and debt settlement aim to help you eliminate debt, they go about it in very different ways:Debt consolidation

  • Objective is to save money on interest payments
  • Pay off 100% of debt principal
  • Consolidate multiple debts into single monthly payment
  • Typically need good credit to qualify for best rates

Debt settlement

  • Objective is to reduce total debt owed
  • Creditors agree to accept partial payoff of debt balance
  • Multiple accounts stay open but with zero balance after settlement
  • Works best for borrowers with poor credit and severe delinquencies

Essentially, debt consolidation focuses on streamlining repayment, while debt settlement focuses on reducing the actual amount owed.

Pros and Cons of Debt Consolidation


  • Lower interest rate saves money
  • Convenience of single monthly bill
  • Fixed payment is easier to budget
  • Can shorten repayment timeline
  • Helps credit utilization for better scores


  • Credit score drop from new inquiry/account
  • Loan origination fees
  • Collateral required on secured loans
  • Need good credit to qualify

Pros and Cons of Debt Settlement


  • Settles debt for less than you owe
  • Alternative to bankruptcy
  • Some companies charge no upfront fees


  • Severely damages credit scores
  • No guarantee creditors accept offer
  • Taxed on forgiven debt
  • Debt settlement fees can be 20-25%+

Which Is Better: Debt Consolidation or Settlement?

Determining which option—debt consolidation or debt settlement—is right for you depends on your financial situation and priorities:

Debt consolidation loans tend to be better if:

  • You have good credit
  • You can afford monthly payments
  • You value preserving credit score
  • You owe long-term debt like student loans

Debt settlement tends to be better if:

  • You have very poor credit
  • You are behind on payments
  • You owe a lot to credit card companies
  • You can’t afford monthly payments

Essentially, debt consolidation is lower risk, while debt settlement is higher risk but with potential for greater debt reduction.

What Are Some Alternatives?

If you don’t qualify for a debt consolidation loan or want to avoid the risks of debt settlement, a few other debt payoff options to consider include:

  • Debt management plan (DMP): Work with credit counseling agency to negotiate lower interest rates on debt
  • DIY debt payoff: Self-driven approach such as debt snowball or avalanche method
  • Credit counseling: Get customized guidance from a non-profit credit counseling agency

The right debt relief solution depends on your personal financial circumstances. Weigh the pros and cons of each approach carefully before deciding what works best for you.

The Bottom Line

When comparing debt consolidation vs debt settlement, there are clear tradeoffs borrowers must consider around monthly payments, total interest costs, credit score impacts, and the likelihood of success.In many cases, debt consolidation loans present the safer path for eligible borrowers who want to streamline debts and accelerate repayment. Meanwhile, debt settlement carries more risks but also more potential reward through reduced principal balances.Carefully assess your unique situation, debts owed, income, credit score and other factors before pursuing either option. This ensures you pick the debt relief strategy with the highest probability of leaving you better off.

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
$500,000 MCA Restructured Over 3 Years
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$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
$350,000 MCA Restructured Over 2 Years

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