Benefits
macy
Rep Points: 500
Benefits one can have for engaging in a debt settlement program was that he can be able to payoff debts according to his financial ability so giving him more convenience and also to avoid bankruptcy for larger companies.
It also reduces your monthly payments substantially. So it frees up some $$ for you. I think its a good attitude benefit as far as starting to take responsibility for yourself.
macy
Rep Points: 500
So both parties benefited on this. The debtor save some dollars and the company earn some while the creditor were able to collect what is due. At least those savings you have could be spent to other daily household expenses and already a big help to your monthly budget.
I believe settlement agencies also assist people in making better deals with other companies and offer their experience to help you get out of debt fast. It's never advisable to rely fully on them though.
sigs
Rep Points: 510
A good settlement company also provides you with time period. Most debt negotiation plans are sketched on the basis of extended time periods. In such cases you have the provision to extend the time span from 2 to 4 years or sometimes even longer. This is helpful for people who cannot afford to pay at one go. It is also less likely that you will have to fight the creditor later to actually delete the negative listing.
some debt settlements look bad on a credit report also.
[QUOTE=usualdamvp;406]some debt settlements look bad on a credit report also.[/QUOTE]
Really? How so? I've never had any debt other than my mortgage so I don't know.
Wouldn't a settlement look like you're trying to rectify the situation and settle it once and for all?
debt settlement can affect your credit report? How come? What would be the reason behind that. You wanted to get out of the debt with the help of someone, and with the aid of someone your credit report will be affected???
it is a good method, but how it works i don't much know about it...
debt settlors will reflect on your credit report, but it will also look favorable for you as it shows you are taking responsibility.
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