Yes, there is a big difference between the two. Debt settlement involves a debt counselor who provides their financial expertise and skills to help you find the best financial solution to your problems. They can negotiate to get you a better settlement amount to decrease your debt. On the other hand, debt consolidation means that you're getting a chance to consolidate all that you owe into one loan facility to gain control over your debt and track your monthly payments much easier. Debt consolidation is a better option simply because a debt settlement strategy includes additional costs and expenses that you have to cover for. Debt counselors don't work for free, and these costs add up to your overall debt amount. However, you can speak to a debt counselor before making a settlement to see what your options are. RELATED: Credit Repair Services