Everyone feels the pressure when debt starts to rack up all around them. With bills filling the mailbox, a bank account constantly threatening overdraft, and the looming guillotine that sits ready to drop upon your wallet, it’s hard not to think about any way possible to get out of all that crushing debt. There are multiple ways to try to get out: repayment plans, debt consolidation, and debt management programs. However, some private, for-profit companies offer debt settlement.
Debt settlement differs from consolidation and management as it is a way for a company to negotiate with your lenders and creditors to pay off a debt for less than what you owe. This is usually done through a lump sum payment that is saved up through an account, usually through the company, and it is used to pay off all your creditors. But be aware of the risks involved with debt settlement.
For one, the company will still charge you money for services and fees to get your debt lowered, and with all the included costs, it might not even be worth it as you might end up paying the same amount, just split between this private company and the creditors. Another involved risk is that you may end up lowering your credit score as most debt settlement and relief companies will tell you to stop making payments towards your debts. This means that you’ll start to accrue late payments with these lines of credit which end up hurting your credit score and history and can drop your credit score up to 90 points. A lower credit score will be detrimental to you in the long run. Not only that, but this process of debt relief can also take years to complete.
Here are some things to consider when you talk to a debt settlement company:
Debt settlement is a risky prospect as the company has no guarantee of successfully getting your lenders and creditors to lower the debt you may owe. If the company fails to get a lower amount, you may still end up owing the company for fees and services, and you’ll be left in a bigger hole than you were in before. Most financial companies that offer debt relief, credit repair, and such cannot legally offer any guarantees when it comes to your money, debt, or credit score.
Creditors may even sell off your debt to collectors during the whole process and you may end up getting calls from debt collectors and agencies. It can get even worse when a creditor or collection agency starts litigation processes to start a suit against you. You may get sued by these creditors for repayment and that will cause more problems.
In the end, debt settlement companies are a big risk. If you are considering a debt settlement company, it’s important to research their abilities and what other people think of the company to make sure the company can help you. Keep an eye out for the following red flags:
Remember to consider a debt settlement company as a last resort and try to go through other avenues and options to help pay off your debts. Most furnishers and creditors will easily negotiate with you, the customer, for a way to settle your debts, so there may be no need to use a third-party company.
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Ok so I've been holding off writing this review for about 7 months. And as you can see by the 5 stars I left I'm beyond happy with the services this company provided me. I was skeptical at 1st even though they had stellar reviews (which is why I chose them) but there's always that thing in the back of my mind of "well they probably won't be able to help me though, I will be that exception they cant fix". Needless to say they absolutely crushed getting EVERY collection I had off my report!!! I had about 5 grand worth of stuff on there that they managed to make disappear like magic. My credit has shot up over 150 points! I cannot say enough good things about them. I even referred my coworker to them after and they sent me a $50 referral check back! If you're looking to clean up your credit, don't wait, call these superstars and get on your way to feeling confident about your credit again. I feel like a huge weight has been lifted off my shoulders and I'm so grateful. Thank you fix your credit!!!
I worked with Mia and Said for over a year, I believe. They were beneficial and responsive. Although we were not successful with all of my accounts, they still helped me raise my credit by about 100 points. So I stand satisfied. I recommend them. Not to mention there prices are very competitive. Thank you all.
I called this place about 3 months when I decided it was time to fix my credit. I spoke with Mia, she walked me thought the whole process in a 5 minute phone conversation. It was simple enough so I decided to pull the trigger and signed up. Its only been 3 months and already they have removed negative items and improved my score significantly. I strongly recommend to give them a call as soon as possible, I waited too long and I wish I would have called sooner. I will update in a few months with the final results.
These guys are legit and professional at what they do and very quick as well very responsive and knowledgeable and they will do everything they can on your behalf
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