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Information on Debt Settlement Option

What is your opinion on debt settlement and how does it affect your credit?

What is your opinion on debt settlement and how does it affect your credit?

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Bill's Answer
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Bills.com | Find Learn Save

Thanks for your question. Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. While I know that there are several fly-by-night debt settlement operations on the internet, there are also several very good operations. Rather than making monthly payments to your creditors, these programs negotiate lump sum settlements with your creditors, frequently reducing your debts by 50% to 60% of your principal balances. These programs usually take only 2-3 years to complete, so this is a good option for many people to rid themselves of debt in a relatively speedy manner. In many cases they can also reduce your monthly payment toward your debt.

There is one major drawback to debt settlement programs, though?they will significantly damage your credit while in the program and for at least a year or two afterwards. It is important to keep in mind, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, if one is currently unable to afford to pay their creditors, the hit on credit may be worth the benefit of ridding oneself of debt. Debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving lots of money.

There are a variety of firms out there offering debt settlement and other forms of debt consolidation. Generally, I would make sure that any firm you choose is a member of the Better Business Bureau and get a sense for the quality of the organization (www.bbb.org).

Bills.com makes it easy for you to apply, by following this link: Debt Help Savings Quote

I hope this information helps you Find. Learn. Save.

Regards,

Bill

www.bills.com

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