| What types of debt can be settled? | | | | requirement, because otherwise, consumers can opt |
| Debt settlement companies handles unsecured debts | | | | for a debt management plan instead. Or just undergo |
| only, like credit cards and not secured like loans | | | | credit counseling, have the counselors help with coming |
| (student, mortgages or any government issued loans), | | | | up with budget plan, and try to reduce debt d.i.y. |
| legal obligations (alimony and child support) and medical | | | | One more thing about "desperation" - debt settlement |
| bills. | | | | is a very good alternative to bankruptcy and it also |
| | | | | has a fast completion time (3 years or less). |
| Can a consumer settle debts on their own? | | | | |
| Definitely, however, it is not easy to negotiate with | | | | Can debt settlement companies guarantee a |
| creditors. There are a few things that consumers | | | | successful program? |
| should know regarding creditor tendencies. There are | | | | No, and anybody claiming so is commiting a blatant lie. |
| those that are very aggressive with collections that | | | | There are no guarantees when it comes to money, |
| they'd threaten to take legal actions against clients for | | | | especially debt relief, as whether or not the creditor will |
| a couple of months of non-payment. But there are | | | | accept a settlement can only be known once a |
| also some that passes the deliquent accounts on to a | | | | proposal has been pitched them. However, once the |
| third party collection agency. | | | | creditor accepts what the program offers, it's up to |
| Debt settlement companies know about these | | | | the consumer to stay with it until it's done. |
| characteristics well because they work with them on a | | | | |
| regular basis. But that being the case, a confident | | | | Do debt settlement companies offer a "money back |
| and well-informed consumer can settle on his own, just | | | | guarantee?" |
| as well. | | | | Yes, there are some debt settlement companies that |
| | | | | offer a money back guarantee once they've |
| Is debt settlement right for everyone? | | | | determined that a settlement is not possible. |
| No, it is not. | | | | What can consumers expect with a debt settlement |
| Professional debt settlement programs have a $10,000 | | | | program?Reduced monthly payment and the prospect |
| or more (overall balance) requirement and a | | | | of being debt free in 3 years or less. However, |
| preference for past due accounts. Consumers must | | | | creditors differ, and the actual amount that they have |
| understand that debt settlement is one of the more | | | | agreed upon can may change along with how it's |
| aggressive approaches to being debt free and it has | | | | going to reflect on the credit report. |
| an desperation ring to it, hence the high balance | | | | |