The first and the biggest myth surrounding debt settlement is that it will work for everybody.
Definitely not.
Debt settlement will work for you only if you fit the criteria and the conditions to qualify for the same.
If you do not fit these conditions and if you tried to force yourself, chances are high that you will end up with a lot of trouble and very little benefits.
There are many persons who are in a position to pay their bills on time but still try to opt for a settlement by purposefully skipping repayments.
Do not do that.
Do not listen to any settlement company that advises you to do that.
A settlement is like a surgery to remove a deceased limb from your body.
If you try to perform this operation on a healthy limb, chances of death i.
e.
bankruptcy increases.
The second myth is that a debt settlement is not possible unless you go through a professional company.
Definitely not.
There are many persons who have successfully negotiated a settlement deal on their own.
Of course, the technicalities in the complexities involved make some of us very confused.
For such persons, the idea of opting for a professional debt settlement company is always present.
However, apart from this point, there is no specific service that a settlement company provides that you cannot achieve for yourself.
To go in for professional services because you need professional help is one thing.
To go in for such a service because you feel you have no other choice is a completely different thing.
The debt settlement industry is completely unregulated.
Definitely not.
There is no Federal law that governs each and every aspect of this industry.
However, there are many states which have regulated settlement and have converted it into for profit and not for profit settlement models.
Some states permit for profit the settlement companies to function only if they have completed adequate licensing and regulatory compliance.
On the other hand, some states have simply banned for profit settlement.
Secondly, there are many trade bodies, most prominent one being The Association Of Settlement Companies, to regulate service providers.
You can visit the website of these service providers and also go through the regulations imposed by your state.
You will discover that there are many roles that are designed primarily to protect the interests of the consumers.
Now that these myths have been cleared out, you can take advantage of this fantastic option and enjoy the benefits.