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Is There A Difference Between Debt Settlement Companies and Debt Negotiation?

admin — Wed, 07 Jan 2009 20:22:18 +0000

Is There A Difference Between Debt Settlement Companies and Debt Negotiation? I am often asked questions about the debt settlment industry. One of the most asked questions is the difference between debt settlement and debt negotiation companies. The truth is that they are basically the same thing.

What Is A Debt Settlement Company?

A debt settlement companies job is to keep you from filing bankruptcy while working out debt payoffs with your creditors. You will pay less than you owe and be out of debt in less than four years. This is generally the idea but it is possible to speed up the process. Some people are able to get out of debt in 12 months or less. The debt negotiation company does not make money the longer you are in the program, they make money when you settle a debt. So they have just as much incentive as you to try to get out of debt in the shortest amount of time.

Often you will save money by completing your debt program faster. This is because you will be avoiding additional unnecessary monthly fees that debt companies charge. So the quicker that you are out of debt the better.

I Can’t Pay My Christmas Credit Card Bills Is Credit Debt Settlement A Good Option?

admin — Tue, 30 Dec 2008 13:47:45 +0000

What do I do If I can’t pay my Christmas credit card bills? Is Credit Debt Settlement a good option. Many American feel an obligation to provide gifts at Christmas. It seems that the media is pushing the sense that we should be providing a gift for everyone at holiday. The truth is that many Americans are still trying to pay off last Christmas while piling on more debt for this one. The truth is that is just doesn’t work. It is more like short term pleasure and long term pain. Once the holiday is over you are left with the credit card bills to pay. It usually ends up being more like worry and fear. You mind will become occupied with strategies about how you are going to pay for everything. Millions wont be able to keep and and will fall behind on their credit card payments.

What Are My Options If I Can’t Pay My Credit Card Bills?

The best advice is to not use your credit cards if you have any concern about how you are going to pay them back. But once you have thrown your hat over the fence it is too late. Many will seek out the services of a qualified credit counselor or debt management firm. Others will seek out advice from bankruptcy attorneys. The truth is that their are not many great choices once you are in debt.

Credit Debt Settlement Is An Option To Bankruptcy

Debt settlement and debt negotiation are definitely an option to bankruptcy. Unlike consumer credit counseling which can take up to 5 years and will have you pay back what you owe with interest, credit debt settlement will actually cut the amount that you will pay back. In some cases you can save up to 60% of what you owe or even more. You would need to speak with a reputable debt settlement agency to see if this would be an option for you.

This information is of general interest only and is not legal advice. If you need legal advice seek out the services of a professional or attorney.

How Do I Know If A Debt Settlement Company Is Legitimate?

admin — Sat, 20 Dec 2008 19:34:14 +0000

How would you know if a debt settlement company is legitimate? When times get tough and people get desperate, the schemers and scam artists start popping up all over the place. You have probably started seeing the commercials on tv advertising credit debt settlement and debt settlement services. The concept of debt negotiation is excellent the follow through by some companies can be poor. You want to make sure that you are dealing with a reputable company. If you do a Google search on the web you will see tons of people that are disatisfied with a debt settlement company. Many debt settlement companies are scams and they have taken peoples money. Just do a Google search on Jubilee Financial. This was a debt settlement company in Scottsdale that ran off with the clients money.

How Can You Tell If A Debt Negotiation Company Is Legitimate? You may see the rip off report show up. If you see it a lot, it is probably not a good sign.

Dealing with any company can be a leap of faith but their are things you can do to check a debt settlement company out.

1. Just do a Google search of the company and see what pops up in the search results.

2. Look to see if they are members of the debt settlement industry accredited organizations like USOBA or TASC.

3. Check with the BBB or better business bureau. You can do this on line.

4. Call your local consumer protection agency.

5. Call your local attorney general.

There is no fool proof method but there are ways to protect yourself.

This information is of general interest and is not be to relied on. If you need professional advice, seek the services of a qualified professional or attorney.