Posted on June 18, 2009 at 2:50 am So. Can anyone convince me why I should settle?

Posted on June 18, 2009 at 3:32 am 1. You can pay off your debts in the soonest time possible. Typically it takes only 24-36 months before the debt can be settled in full.2.You'll only pay 30-60% of your entire loan balance.3. It helps you rebuild your credit at a much manageable rate.4. It's a better alternative to bankruptcy.

Posted on June 18, 2009 at 4:33 am Any creditor would be dumb enough not to take a settlement than to get a liability on their accounting books. Besides you don't really have to do it yourself, because you can get someone, like a debt settlement company, that can help you. On your end, you won't have to go thru the ugly process of bankruptcy, and that'll last ten years on your credit report. Besdies the settlement process will stop collection calls, that's what happened to me

Posted on June 18, 2009 at 5:01 am When you settle your debts, the amount that you need to pay to your creditor will be reduced significantly--just to echo what was earlier said, you'll pay only 30-60% of your entire balance. Also, it is the fastest means of getting out of debt. Even if you filed for bankruptcy, for example, it would take a particular period of time before all the debts would be discharged, or wiped out. Settling also will reduce, if not completely remove, the fees on your account. Also, once the account has been settled in full, creditors will no longer be asking for more payments from you--of course that is after you gave agreed on the amount with your creditors, and after the final payment was made.

Posted on June 18, 2009 at 5:20 am i am concerned abt a few things:first. how it will appear on my credit report. second. how it is supposedly better than bankruptcy. third. how much should i shell out in the event that i decide to work with a debt settlement company. and fourth. how to tell if the company is legit or not

Posted on June 18, 2009 at 5:56 am * When your debt has been settled in full, it will be noted on you credit report as "settled in full." You may not have a dramatically increased score after this but it gives you a chance to improve your credit score after the settlement is over. Debt settlement does no permanent damage to a person's credit report, and choosing not to settle would have a greater impact, leaning on the negative, on his credit score for a much longer time. * Bankruptcy will appear on your credit report for ten years, and twenty years on your legal records. Lenders will also think twice before they will grant you credit in the future. If they do decide to extend credit towards you, your interest rate may be higher than other consumers would be charged.

Posted on June 18, 2009 at 6:19 am Thanks Purple Cow, I'll pick up where you left off. The rates vary but typically debt settlement companies charge 15% from the total debt amount as the initial fee. Some debt settlement companies do not require additional charges, so the best way to find out abt this is ask them.You may find out if a company is government-approved by checking them out thru the Department of Justice's database. An additional tip I'd like to give you, Fly Gurl, is check out their listing at the Better Business Bureau. The bureau aids consumers and lobbies for consumer protection as well as fair and just business practices.

Posted on July 7, 2009 at 4:59 pm To address what Purple Cow stated- so, a settlement will not appear on your public/legal records at all, as opposed to a bankruptcy as was mentioned. But, I need to clarify something. A settlement will not always be reported as "settled in full." At times, it will be reported as "settled" or "settled for less than the full amount" or something along those lines. The key word obviously is "settled." While this demonstrates the borrower's inability to pay the debt back in full, it is far better than a bankruptcy from a credit standpoint. Overall a good job though of outlining the advantages of debt settlement by everyone!

Posted on July 9, 2009 at 1:40 am BUT DOES DEBT SETTLEMENT HAVE ITS DISADVANTAGES???

Posted on July 9, 2009 at 4:10 am I don't know if you can consider this as a disadvantage but the forgiven amount from the settlement is deemed as taxable income. You'll have to report it as such to the IRS.Another disadvantage is that the account needs to be delinquent before you can be able to negotiate.