There are a lot of people who are having a hard time with their finances right now. They have a lot of debt and not nearly enough money to pay their bills every month. People who have to deal with these kinds of problems have no choice but to find the best way to get out of debt and stop worrying about money. Many people find that their search leads them to options like debt settlement, which has become more popular in recent years.
There are, unfortunately, a lot of lies out there about the debt settlement process. If you're thinking about going this route, it's important to be well-informed and know the facts. In a recent article I read about debt settlement, the author said that if you pay your agreed-upon settlements in full, you'll have a "good credit rating." This is not true. The author should have gone on to say that, yes, your credit score will go up, but only after your credit report shows that you have paid off all of your accounts. The credit reporting process does not happen right away. Instead, it can take a few months. Even though I think debt settlement is a good option for people who might otherwise file for bankruptcy, I think it's important to know all the facts before making a final decision about how to handle your credit accounts.
Also, I recently came across some information about debt settlement that turned out to be completely made up. A recent article says that debt settlement companies can get your creditors to "re-age" your accounts so that they look like they are up to date. This information is not true and has never been true. In fact, the person who wrote this article is either a liar or someone who shouldn't be writing about a subject they don't know a lot about. Debt settlement companies' job is to work with your creditors to settle your debts for less than the full amount owed (usually 50 percent or less). During the debt settlement process, there's no reason to change the dates on your accounts, and your creditors won't let you.
I'm sure you've heard or read about some of the possible effects of debt settlement, like having to pay taxes or having your credit score go down. If you're thinking about debt settlement, you could be worried about both of these things. Click here to learn more about how debt settlement affects your income taxes. If you want to learn more about how debt settlement could cause your credit score to drop temporarily, click here.
It's time to stop worrying about money, but it's also important to do enough research to make sure you're well-informed before you try to do something you don't know how to do. There are a lot of debt settlement companies that don't ask you to pay a lot of money up front or even to put money in a trust account every month. The same reputable companies will agree to work for you on a contingency basis, which means that you won't have to pay for their services until you've reached a good deal with your creditor. Before you hire a company, make sure you talk to a lot of them. Also, be wary of companies whose representatives seem more interested in getting your money than in helping you solve your problem and get out of your financial trouble.
