A debt settlement company is a financial professional that assists consumers in negotiating with their creditors to pay off their outstanding credit debt, according to The Association of Settlement Companies. There is no yes or no answer to the question of whether a settlement company is right for you. You need to be armed with the pros and cons of debt settlement, and then make that very personal decision for yourself.
Pros
A reputable debt settlement company is one that can offer advice on how to better handle your monthly finances, get you in touch with the resources you need to understand how you can save money on your monthly bills and help you to get your finances back under control. A debt professional will also negotiate directly with your creditors to get you a pay-off amount that you can afford at a monthly payment that is easy on your budget. For people who do not want to deal directly with their creditors, an experienced professional doing the negotiating for them can be a relief. A debt settlement professional has the ability to bring your outstanding debt under control, and help you to begin the process of repairing your credit score.
Cons
According to MSN Money, the average debt settlement professional is charging you a fee for a service you could very well perform for yourself. A credit company does not want to have to pay legal fees to pursue a consumer, and the credit company certainly does not want to see you go bankrupt and risk getting nothing for what they are owed. According to the online self-help website SelfGrowth.com, some debt settlement representatives are more interested in their commission than in developing a plan that will help the customer. You very well could wind up paying more to a debt settlement company to take care of your debt that if you performed the negotiations yourself.
Bottom Line
If you are someone looking for closure on settling your outstanding credit card debt, and you feel that you are not qualified to negotiate with the credit card companies, then a debt settlement company may be the right solution for you. Use the Better Business Bureau and other watchdog services to find a reputable debt settlement company, and then discuss your options with that company. Beware of companies that make promises that seem too good to be true, and avoid dealing with companies that are only interested in signing you up to a standard plan as opposed to developing a plan with you.
If you are not adverse to negotiating with the credit card companies yourself, then you may find a certain level of satisfaction in settling your debts on your own. Do some preliminary research on how debt settlement works so that you can discuss your situation with your creditors intelligently, and be sure to keep detailed notes.
0 comments:
Post a Comment