DON’T!
That should just about sum it up. Debt settlement companies:
- Cannot reduce the debt lower than you can negotiate
- Cannot help you avoid legal action such as judgment and garnishment
- Charge you monthly fees of $35 or more
- Charge you a percentage of the savings
- Fail to disclose potential taxes on forgiven debt that you will owe
- Have a dismal success rate
- Have horrible ratings with the Better Business Bureau, with only a few exceptions
- Are mostly for-profit corporations
Debt settlement is a negotiation with your debt collector for the purposes of closing the account through compromise. There are few pros and many cons to settling, but it does make sense in a few instances.
You can settle your own debt without using a debt settlement company. Using a debt settlement company is expensive and offers no guarantees.
If you are considering debt settlement, consider some of the alternatives. You might find that settlement is unnecessary, or that there are better options available based on your situation.
Tags: How to Select a Debt Settlement Company