tell me about debt settlement

[Aces]

So Ive been reading about debt settlement (god knows I need to do something) but I can figure out whats so great about it. It seems like theres always a catch to these programs. Do you really save money and fix your credit or are you better off doing it the old fashioned way?

if there are any potential drawbacks or warnings about debt settlement I need to know about it! the internet and these company reps dont tell you much so im relying on you people.

[mycreditgroup]

Here’s the deal with Debt Settlement

For some consumers depending on their personal circumstances, it is exactly what the doctor ordered.

- Debt settlement services may be able to settle the amount owed for as little as .30 cents on the dollar. That’s a 70% savings.

- They can even sometimes get collectors to agree to remove the negative marks in return for payment.

- It “stops the bleeding” as it will show “Paid in full, settled for less”.

So what’s the downside of debt settlement companies?

Unfortunately, opportunists once again have taken would could be a great service and turned it into a mess. It’s not that they’ve ruined the advantages of settlement programs; it’s more that they neglect to tell you the downside in order to get the sale.

Problem #1: Creditors will not agree to take a settlement unless you are about 90 days late. So most debt settlement companies will tell you to stop paying your bills and then they can get you these great deals.

You just completely destroyed your credit by doing that!

Problem #2: The average debt settlement company charges 15% to 20% of your TOTAL Debt in service fees.That is extremely excessive for somebody trying to save money.

So who’s it right for?

There is no substitute for paying your bills in full, on time. But that’s just not always reality right now. Debt settlement has tremendous advantages for the right person. Just make sure you understand the consequences.

If you’re already behind 90 days, or if you just cant afford the payments anymore regardless of what it does to your credit score – than debt settlement is a great cure for some people.

FYI My Credit Group Charges 5% for Debt Settlement that’s a fantastic rate given the industry average.