Can Debt Settlement Companies Really Help?
There are a lot of things that you can do with your debt – and debt
settlement is one of them. You have undoubtedly seen the various ads
around that say that they can settle your debt for pennies on the dollar
and that you won’t have to pay back what you owe – but for the most part
these claims are a bunch of bunk and you will end up in a real mess.
Debt settlement takes the bills that you have and reduces them – that is
the idea of it. However, there are many companies that claim to do it
but don’t necessarily help you out. They may charge an exorbitant amount
of money to take care of it for you, and in the long run you aren’t much
further ahead than you were before.
It is also very detrimental to your credit to have a settlement on
there. It stays on just as long as a bankruptcy and many companies look
at it the same way. Your credit score will still go down and you will be
further in debt from paying off the company that was supposed to help
you. Don’t go with anyone who has you pay up front, and don’t use anyone
you haven’t fully checked out first.
Debt consolidation is usually a much better way to go. You take out a
loan; pay off all of your other debt, and then make smaller payments on
the total. If you can’t afford anything other than settlement, you will
probably want to declare bankruptcy because it costs less money and you
end up debt free.
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