subject: Debt Settlements - Pros and Cons of Getting Debt Settlement [print this page] Author: Eri k stump Author: Eri k stump
Every body is aware of the financial hardships many face today. Many have turned to debt settlement companies to reduce or eliminate their debt. Before seeking a debt solution through one of these agencies there are a few things to consider. First you need to know what your settlement entails. Debt settlement is a process by which you and your creditor come to a mutual agreement that eliminates your debt for less than you owe. A settlement company negotiates for you in exchange for a fee usually a percentage of what you owe. However there are some pros and cons to every debt settlement programs. Pro: Debt settlement agencies negotiate to reduce or eliminate your debt. You pay less than you owe however there is a down side. Con: Debt settlement can adversely affect your credit score. You pay less than you owe. This shows on your credit report as settled rather than paid in full. Pro: Negotiating a debt reduction cab -in some cases- be better than bankruptcy. Bankruptcy is often a quick way to get out of debt but you must have a lawyer and bankruptcy stays on your record for a number of years and can follow you for the rest of your life. Con: It's only for people who have gotten in over their heads or have recently suffered a medical crisis, divorce or lost their jobs. Another thing to consider is that if you have lost a job it may be difficult for you to pay the Agency what you owe them in fees. Also many who are in this group end up dropping out of their program before a resolution is reached Pro: As compared to bankruptcy as a solution to your financial woes you don't need to hire an attorney however you do need to know how these agencies function which leads us to another con. Con: Credit resolution companies require you to pay a percentage of what you owe as a fee and also require that you save a substantial amount of money that will be used to settle the debt and if you aren't working this can make this next to impossible to do. Debt settlements can be a viable solution for the right client. But as in all things the buyer must beware. If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt settlement companies and increasing your chances of eliminating your debt. FreeDebtSettlementAdvice.com is one of the largest and most respected debt relief networks on the marketplace today. To find a debt settlement company through FreeDebtSettlementAdvice.com check out the following link: Free Debt Advice About the Author:
debtreliefemergency.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.
