Debt Settlements – The Truth About Debt Settlements

debt settlement order
by wallyg

Debt Settlements – The Truth About Debt Settlements

Debt settlements have recently become under increased scrutiny. It is important that consumers know the truth about debt settlements and don’t believe everything they hear. It only takes a few bad stories to give a whole industry a bad rap and while that may not be fair it is a reality. Perception is a reality.

Debt settlement companies are not scams even though there are some companies out there that will try to take advantage of desperate consumers. The majority of debt settlement companies will be able to generally help consumers eliminate unsecured debt. This article will help distinguish myths from reality in the debt settlement industry.

Your credit will be negatively effected when you get a debt settlement although it will not be nearly as bad as bankruptcy. Bankruptcy usually takes about 7 years to fully recover from while debt settlements typically only take a couple years. Any debt company who tells you that they can eliminate your unsecured debt and have it not affect your credit score is lying to you and you should probably look elsewhere for a more ethical company. If they lied to you once they will probably do it again.

Debt settlements will eliminate 60% of your unsecured debt on average but every case is different. Some could be higher and some could be lower. It all depends on the general status of your accounts and also how effective your debt settlement company is at negotiating with your creditors. Find an established and successful company can end up saving you a lot of money and stress which is why it is so important that consumers know where to look.

If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company.

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