Debt Settlement:Debt Help Services-Deciding What Is Best For You

May 13, 2010 - PRLog -- Debt help services are quite prominent in the media right now. They are being advertised on the radio, television and internet. And there is a need for these services right, but the atmosphere is right for exploitation when people have problems and are looking for help. There is always someone ready to make a quick buck off of other people’s troubles.

Debt settlement companies are one type of debt help that is available. These companies negotiate a reduction on the amount that is owed on your credit card accounts. You make payments to an escrow account until it contains enough money to begin paying the agreed upon amounts one at a time. Here are the problems with this debt relief option.

While it can save as much as 60% on your total debt, it will ruin your credit. Also, using a debt settlement company can be expensive. Fees are usually based on the amount of money they save you and it can be as high as 25% of your forgiven debt. Truthfully, you can negotiate a debt settlement on your own without the help of a debt settlement company. Many lenders will not deal with debt settlement companies. If you do decide to use a company to negotiate your debt, make sure you know who you are dealing with. These organizations are in business to make a profit and may not always have your best interests in mind when they advise you.

A nonprofit credit counseling company is another type of debt help service. These companies are nonprofit and help you get out of debt by consolidating your unsecured debt without a loan. Only one payment is required each month and they do all the interacting with your lenders. You just need to make your agreed upon payment once a month and you should be out of debt in 3 to 5 years.

These companies are more regulated then debt settlement companies and there is less chance of being scammed, but it is always wise to completely research any company that you are going to be giving your money to. Debt settlement companies are a great place to start, if you are overwhelmed with debt and don’t know where to begin.

For more information visit http://www.debt-settlement-processing.us or call us directly. Here is another helpful debt settlement article http://www.prlog.org/10677980-debt-settlement-relief-the-... for your reading enjoyment.

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