Why Debt Settlement?Why Not Debt settlement?
When considering the debt solution a debt settlement can offer, ask yourself: why not settle my debt? The answer should be obvious: you will save money on the debts and bills you currently owe. Additionally you can save on debts which you have already let fall into delinquency and collections. Debt settlement is the process by which consumers work with their creditors, either alone or with a credit counselor, to come to an agreement. The agreement is that you, the consumer, will make payment on your debt and that they, the creditor, will lower the amount you owe them. The creditor gives a little and in return collects on an outstanding owed debt they might otherwise lose altogether. The consumer benefits by not risking potential credit damage by defaulting on a debt or even turning to a bankruptcy petition as a last resort. Of course more to the point, the consumer also eliminates their debt for less money. Always a positive thing. Debt Settlement Is Not Debt Default
The word settlement sometimes makes some consumers squirm with fear for their credit history and rating. It should be noted that debt settlement is not a bad thing in regards to your credit score. In a debt settlement you are paying off your debt. The only difference is you are opening up a dialogue with your creditor first to lower the amount you currently owe. You still make payment on your debt: you do not go into default. Your credit score will not be negatively affected with a debt settlement. In fact you can even use debt settlement to help eliminate old debt that has gone to collections, potentially clearing up past credit blemishes. Just as with the current creditor, you simply contact whoever currently owns your debt and talk. It is in the best interests of the collection agency to offer you a discount on the amount owed in order to collect something rather than nothing.
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