What is Debt Settlement, and
Can It Help You?
If you have seen companies promising to get
you out of debt by paying only 50 or 60 percent
of your debt or less, you were probably dealing with a debt settlement
company. The thought of paying only 50 percent of a debt
appeals to many people.
However, there are several
problems with debt settlement. Most debt settlement
companies simply hold your monthly payments until they have
enough of your money to reach a settlement. In the
meantime, your accounts fall farther behind, and may even be
charged off to collections. Your credit score will drop
significantly and you may be harassed by bill collectors.
To top it off, there is no guarantee that a settlement will be
reached. If you do save money by settling, the debt
settlement company will probably keep a large percentage of the
money you saved as a fee. Amounts written off in a
settlement may also be considered taxable income. If you are considering debt
settlement, you should first seek the guidance of a reputable
credit counselor.
Call us Toll-Free: 866-406-4132
Email Us at:
debthelp@newcreditdebtconsolidation.com |
