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Debt Settlement

Published by admin on November 25, 2009

Debt Settlement

Debt settement is a different concept than debt consolidation, debt management, or credit counseling. The last three mentioned are about reducing your interest rate of your loan, and your monthly payment. But debt settlement is something a lot different. The goal of debt settlement is to settle the total amount of debt by 40% or more. This means that, after you have used a debt settlement program you will only have pay your creditors 60% of what you owe.

This type of program is perfect for people that want to get out of debt quick, without caring about their credit score.

Debt settlement companies should get you out of debt in 1-2 years, and can reduce you debt by 35-45% including their settle fees.

Before you sign up for a debt settlement you must clearly understand the legal and the tax implication of such a program. And also you must know that such a program will influence your credit score in a negative way, but you can repair your credit, after you have finished paying your debt. It will be better to be debt free and to work on repairing your credit, than the situation you are now.

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