A
debt settlement program is a process in which an individual or organization negotiates with a creditor to reduce the amount of debt owed.
Full definition
Individual consumer testimonials are, by their nature, anecdotal; they do not constitute a representative sample of consumers who have enrolled
in debt settlement programs.
Debt Settlement More aggressive than consumer credit counseling,
debt settlement programs work on reducing the actual principle balance of the debt, and can provide a constructive alternative to credit management.
These companies offer
debt settlement programs where they'll communicate with your creditors and convince them to forgive part of your outstanding balance.
Debt settlement programs require you to permanently stop making payments to your creditors, and by doing so your credit report can be severely negatively impacted.
There is a huge void of people that fall into this category and as it stands they only have 2 options: unreliable long -
term debt settlement programs and bankruptcy.
Because
debt settlement programs often ask or encourage you to stop sending payments directly to your creditors, they may have a negative impact on your credit report and other serious consequences.
Contrary to the sales hype, there is no protection afforded the consumer by participation in a formal third -
party debt settlement program — just the opposite, in fact.
Now we're really stretching, as this particular
tax debt settlement program is only going to be an open for people in very specific situations.
Typically, after consumers enroll
in debt settlement programs, the companies charge excessive upfront fees and advise consumers to stop paying their credit card bills.
Debt settlement program fees can only be charged after a debt is settled, so make sure the debt settlement company doesn't try to charge you upfront fees.
Phrases with «debt settlement program»