Debt Settlement Services

Debt Settlement Services

Sure there are a lot of benefits of using debt settlement services to help you get rid of your debt, but their is also a fairly heavy price to pay for the discounts that you get with debt settlement services. Make sure that you know the details of any debt settlement programs before you sign up. The more you know about any financial decision that you make, the better are your chances for success!

The sunny side of the street

When you decide to handle your debt through a debt settlement service they start by negotiating with your creditors for the lowest final settlement balances. Most of the time they are able to reduce the final debt to between 40-60% of the original debt. It is easy to see why only having to pay back 40-60 cents on the dollar would be such a selling point for debt settlement services. Generally you will have to pay that lump sum immediately, although there are some debt settlement services that allow you 1-3 years to pay off. But, if you do pay that right away, you will be able to start saving your money instead of sending it off to creditors.

The shady side of the street

Of course, with that kind of discount from your debt, there has to be a downside to these debt settlement companies. First of all, you will not have satisfied the debt according to the original agreements and that counts for a blemish on the old credit report. Your debt settlement history will stay on your report for about the next 7 years and will lower your overall credit score. It is up to you to decide if the good outweighs the bad.

About Us | Contact Us | Site Map | What's New | View as RSS