The Truth About Debt Settlement
Monday December 8, 2008
Too many uninformed debts learn the truth about debt settlement the hard way, by signing up for it. Though the credit crisis is making it tough for many families to make ends meet, it's still important to make informed decisions about your finances and especially about handling your debt. The truth is that debt settlement could end up costing you in terms of money and credit score points.
If your accounts are current and you have a decent or good credit score, consider your other options like consumer credit counseling. Do what you can to protect your credit score even if it means selling some assets or getting a second job to pay off your debt.
Comments
I completely disagree. Debt negotiation or debt settlement as it is now called is an honest and effective alternative to the above mentioned programs. Debt Settlement programs are the most aggressive way to handle your debts. Debt settlement companies work for the consumer. Debt Settlement programs are the only programs where you are not paying back 100% of the principle plus interest and late fees. People ask what happens to the rest of the money that they owe and the truth is the balance is actually forgiven by the creditor in a transaction called a settlement. This process allows you to handle your debts in a much shorter time frame then any other program due to the reduced principle you are paying. The major advantages of enrolling in a Debt Settlement a program are:
Honest and Honorable way to avoid bankruptcy
No public record of ever enrolling in a debt settlement program
You choose how long you want the program to run
1-3 year program vs. 6-9 years in debt consolidation and counseling programs
Allows for flexibility if a monthly payment is missed. For a free consultation, goto: Http://www.DebtSettlement2009.com. Thanks and good luck – Bob
I think the key words are “decent” or “good” credit. If you have 600 or higher, I wouldn’t recommend debt settlement. For lower scores, this can be helpful because the individuals score is already too low to get any type of loan(at least with decent interest)
I’ve used a settlement program and successfully completed it, with an improved score(from 510- 650) Another key is to get a secured credit card to start reestablishing credit. Another trick is to talk to your bank or credit union and tell them you would like a loan to repair your credit and have the account only for that payment plus interest for six or tweleve months. It will do wonders for your score.