Debt settlement and debt negotiation firms have become more popular with the increase in consumer debt. As with most instances that have to do with money, you have to be careful not to be taken advantage of. There are good debt settlement firms, and there are nightmares, ready to exploit your vulnerable situation.
Other options to debt settlement firms, if you have a significant amount of debt, is to file bankruptcy.
There are plenty of stories on the internet of how people paid large amounts of money to agencies promising to make their debt problems disappear. These consumers found they still had the debt and now or even further behind in payments and being threatened with legal action.
Debt settlement can be a legitimate Avenue to satisfy your creditors or significantly reduce your balance. It will take time and money to go through a debt settlement agency. If they tell you it will be a quick, cheap, and easy fix… look for another agency.
Paying Less than Owed
Debt settlement works when your unsecured creditors accept less than the full balance owed. They do this to ensure they will get some money on the debt. They know that if you file bankruptcy, the entire debt may be eliminated.
Most of the time, credit card companies will agree to a lump sum payment. Sometimes up to 50% less than the total owed to the creditors. Once paid, it will be marked as paid and settled. Your credit report will show no balance due in this settled account
If you are unable to come up with the money to settle your debt, or if you would like to find out the benefits of filing bankruptcy, contact a Fort Worth bankruptcy attorney to find out how to eliminate all of your unsecured debt.