What are the benefits of Debt settlement?

[Shane Watson]

I have been trying to understand the benefits of debt settlements for different purposes, as our situation leads to different ways. And it’s almost in every financial sector.

Here are the benefits of debt settlement service:

1. Your debts will be paid off for much less than whatever you owe. Debt settlement can save between 40-60%. It mostly depends on those credit card companies, from where you have borrowed from. And also, you can save some interest over the process!

2. Whit this the debt settlement will faster if you compare with paying the minimum payment. For an example if I were to say that your credit card debt amounts to $10000, and with your minimum payment each month, it will take about something like 10 years. But debt settlement can bring it close to 2 to 3 years.

3. Without debt settlement you might bankruptcy and for that you will need to hire an attorney. If you have debt settlement than you wouldn’t have to worry about the attorney any more.

4. The best part is that you can do it by yourself and get a home learning procedure about settling your debt. Many people have done it so far. You could be the next one.

5. Not to mention the early tension fee life after the debt relief.


So it is your decision!

[centex]

And how about the drawbacks:
Effed credit
Increased likelihood of litigation
Higher amounts of money spent on settlements than the customer could arrange on their own

[Hedwig]

I never understood why you would pay a fee to someone to manage your debts when they just don't pay the bills for a while, you end up with a higher rate (meaning you have even more debt), possibly get sued, and you're paying someone a hefty fee for this???

[NightStar]

Debt Settlement Companies are just out to get your precious money that could be better used to apply to the debt.

It is best if you are going to settle with a creditor or collection agency that you do it yourself.

1. Send all offers of settlement in writing, make them write you back confirmation of agreement. If you are not satisfied with the agreement, send another letter, until you meet in the middle.

2. Negotiate payment in exchange for deletion!!!! Get it in writing, in case they don't follow through. Then you can forward the letter (copy only) to the Credit Reporting Agency.

Don't use Debt Settlement Companies

1. They don't immediately pay the debt, they sit on the money you are paying in until the last minute. Sometimes even longer resulting in you being sued.

2. They are not concerned about the status on the credit report. They are not going to negotiate for deletion!!!

3. They charge a fee to settle your debt, which would be better used towards the debt.

Creditors don't like these companies, they are not required to communicate with these companies. You may of just got involved with a debt settlement company that can't deliver on their promise.

It is better if you educate yourself before settling, learn all you can, and re-read before setting forth a plan of action.