The downsides to debt settlement
As with any financial move one wants to do all of the research that they can before moving forward. This is a very wise and responsible way to confront a financial situation. All consumers must realize that every debt program is different and helps each individual as such. One program will suit one consumer and the other will help another consumer. Of course it depends on the consumer’s financial situation and what their current needs are. Finding a reputable company that will take the time to treat you as an individual is very important for financial success. The debt settlement program is usually one of those programs that are not explained as well as it should be so it has gotten a bad name.
Some people may view the debt settlement of being a disadvantage as it would be to some. If one is current with their debts and able to make their minimum payments then they should not do the debt settlement program. A better approach to this would be the debt consolidation program. When doing a settlement program it is a program that one will fall behind on their debts. If one is no longer able to pay their debt settlement can help them out significantly. Most consumers may ignore the debt or file bankruptcy which is a lot more damaging then doing the settlement program. As stated earlier it depends on the situation and what it is that the consumer needs help with.
Debt settlement is a negotiation of debt balances. After debts are settled the consumer will fall behind or maybe they already have. This should be understood when speaking with a representative. Settlement is design to give the consumer a low minimum payment on the settled debts in order to pay them off. Most people in this situation find this to be very beneficial and rewarding especially If bankruptcy was in their future. Debt settlement should always be the route to take before pursuing bankruptcy. Bankruptcy is very negative to one credit history and should be thought out beforehand. Although consumer falls behind they are given the chance to pay the debts and restore their credit. The debt settlement program last about 36 months compare to bankruptcy which last about ten years.
If one is behind on their debts or in collections the debt settlement program will be very welcoming. If one is current on their debts they may want to look into a debt management program because it will not harm their credit score. If one has no way out and needs to file bankruptcy this is understandable if it is their only option. Do not listen to stories and such do the research yourself and find the debt program that suits your own individual needs not others. This is your debt and your decision to make after understanding what can be done. Make sure you find that reputable company that will back you and make sure that your experience is productive and satisfying.