Consumer Debt Settlement - Get the Facts Before You Enroll
Consumer debt settlement can be done one of two ways and that is by yourself or through a debt settlement company.
The biggest difference is if you do it yourself you will be negotiating with the lender.
If you use a debt settlement company, they will be doing the negotiating with the lender.
And this service will probably be about 15%-25% of the amount of the forgiven amount of the debt.
You can get out of debt relatively quickly through debt negotiation and the biggest reason for that is you are not repaying your balances in full.
You are settling them for a lesser amount.
If you have a lot of debt that you want to settle, you may want to use a service, because they are experienced at dealing with lenders.
With these companies you usually make monthly payments to an escrow account and they pay your lenders one at a time as the money becomes available in the escrow account.
There is a real downside to debt settlement and only you can decide if this alternative will be worth it to you.
It is called an alternative to bankruptcy for a reason.
It will ruin your credit because you have not repaid the complete balance on your accounts and in many cases may not have made payments for several months.
The second disadvantage is the taxes.
You will be taxed on the amount of the debt that is forgiven, because it will be considered income.
For some poor credit may not be a concern, because the credit is already in that position.
In that case maybe the quickest way out of debt is the best.
For those that need help, but have remained current with their debts, credit counseling may be a better option.
Your credit will remain good through out this process.
Your unsecured debts will be consolidated and your interest rates will be reduced.
Your payments will be about 2% per month.
You will make one payment per month to the credit counseling company and they will pay your lenders.
The plan takes about five years to complete.
If a credit counseling company cannot help you, they will refer you to someone that offers the type of help that you need.
You can get a quote as soon as today for beginning your journey towards debt freedom.
The biggest difference is if you do it yourself you will be negotiating with the lender.
If you use a debt settlement company, they will be doing the negotiating with the lender.
And this service will probably be about 15%-25% of the amount of the forgiven amount of the debt.
You can get out of debt relatively quickly through debt negotiation and the biggest reason for that is you are not repaying your balances in full.
You are settling them for a lesser amount.
If you have a lot of debt that you want to settle, you may want to use a service, because they are experienced at dealing with lenders.
With these companies you usually make monthly payments to an escrow account and they pay your lenders one at a time as the money becomes available in the escrow account.
There is a real downside to debt settlement and only you can decide if this alternative will be worth it to you.
It is called an alternative to bankruptcy for a reason.
It will ruin your credit because you have not repaid the complete balance on your accounts and in many cases may not have made payments for several months.
The second disadvantage is the taxes.
You will be taxed on the amount of the debt that is forgiven, because it will be considered income.
For some poor credit may not be a concern, because the credit is already in that position.
In that case maybe the quickest way out of debt is the best.
For those that need help, but have remained current with their debts, credit counseling may be a better option.
Your credit will remain good through out this process.
Your unsecured debts will be consolidated and your interest rates will be reduced.
Your payments will be about 2% per month.
You will make one payment per month to the credit counseling company and they will pay your lenders.
The plan takes about five years to complete.
If a credit counseling company cannot help you, they will refer you to someone that offers the type of help that you need.
You can get a quote as soon as today for beginning your journey towards debt freedom.
