Blog

Does Debt Settlement Work?

Saturday, Aug 17, 13

Debt Settlement can be a great alternative to Bankruptcy for consumers facing financial hardship. Neither Debt Settlement nor Bankruptcy should be considered as an alternative to avoid paying the debt you incurred. However, both of these programs can yield significant benefits if you honestly are having a hard time paying your bills and you need assistance in getting out of debt.

Debt Settlement helps consumers with excessive unsecured debts that are facing financial hardship an alternative to Bankruptcy. Unlike a Chapter 7 Bankruptcy, in Debt Settlement, you actually settle your debts, often for pennies on the dollar. Once the debt is settled, your creditors or debt collectors will update your credit report to reflect a 0 balance.

When choosing a Debt Settlement company, be VERY careful. Make sure the Debt Settlement Company only charges their fees after a debt is successfully settled. Many Debt Settlement companies charge all their fees up front, and this is the worst case scenario for consumers attempting to get out of debt. It’s normal for companies to have fees for services performed, make sure you don’t get charged before the services are performed. I’ve heard many horror stories from people who paid all the fees upfront and then the Debt Settlement Company failed to provide the settlement services. You cannot fall victim to this if the fees are only collected after the debts are settled. Make sure that you have to approve all settlements first before and debts get paid. It is critical you have the final say so before any of your funds are used to settle a debt. Make sure you have realistic expectations for Debt Settlement. If you are looking for a company that will settle your debts at a 99% discount, your expectations would be unrealistic, and you will not benefit from this type of program.

Cure My Score provides free quotes to consumers who are struggling with excessive debt. For a free quote, fill out this form.

About the Author

Credit Reporting / Scoring Expert, Chris McConville is the President of Credit Education at CureMyScore.com and founder of myexpertcreditwitness.com where he works as an Expert Credit Witness in both Federal and State Court. With working in the credit and mortgage fields since 1991, he’s dedicated to sharing his knowledge to educate consumers.

we know credit

Proud Member of

National Association of Credit Services Organizations

STAY UPDATED ON THE LATEST SCAM AND FRAUD ALERTS BY DOWNLOADING OUR FREE APP.