If you are considering debt settlement, it must mean that you are deep in debt. These settlement companies exist for the sole purpose of helping you to eliminate debt. Due to this, many people enlist the help of these settlement agencies or companies to help them get rid of their debt. However, you will have to know that despite the good that they bring, there are also negative impacts from such a settlement.The good part of the such settlement is:
· You get to repay a debt in full at a lower amount· Some creditors would agree to delete the negative information on your credit report· You will not have to face aggressive collection calls· You will not face legal action· You will not have an open unpaid account on your credit reportThe negative side of such settlement:· Your debt will be put on your credit report as settled rather than paid in full· You need to get a written statement by your creditor that you do not owe them anything· Any savings you make on your debt needs to be reported the Internal Revenue Service (IRS) because it is considered as an income· High upfront fees that are charged by these companies might not fit your budget
· Debt settlement might not work for youIt is important to understand what you are getting into before you make a decision on whether or not you want to settle debt on your own or get a debt settlement company to help you. Just because it is easier to get a debt settlement company to help you, does not mean it is the best option available to you. There are many other ways to settle debt; you just need to find out what suits you best.