Posted on July 20, 2009 at 2:52 am hello everyonewhat are the pros and cons of debt settlement???i have a weighty amount of debt and am considering this option to take care of all my bills.if i see that my option isn't all that good, i just might file for bankruptcy.thank you for your answeers

Posted on July 20, 2009 at 4:26 am Well one good thing about debt settlement is that you can satisfy the debt in full while paying less than the amount that's actually due, which gives you a savings on a certain sum of money. Is it true, though, that some debt collectors can agree to delete negative information on your credit report when the debt is settled in full? Kindly verify this, thank you.

Posted on July 20, 2009 at 5:38 am I hear you are still able to receive collection calls and letters while in a program with a debt settlement company. is this true?

Posted on July 20, 2009 at 6:09 am Another advantage I believe that debt settlement has is that you'll be debt free in a much faster rate than other forms of debt consolidation. It typically takes a year to three years before the program is completed.Yes, you will still be able to receive contact from debt collectors if your account is enrolled in a debt settlement company--of course, that is if your account isn't set up on a payment arrangement with them.

Posted on July 20, 2009 at 7:16 am Debt settlement proves to give you a potential for your savings, but at the same time the forgiven amount needs to be reported as taxable income. I believe this may apply if the forgiven amount is $600 or higher, so I need to clarify this.It also is a more viable option to bankruptcy because it will give you the opportunity to pay for your bills and get them taken care of, without having long-term effects on your credit, unlike what bankruptcy does.

Posted on July 20, 2009 at 7:22 am Some basic debt settlement pros and cons: Pros: 1) Potential for a much lower monthly payment than what your creditors are asking for. 2) Potential for substantial savings off of your original debt amount. 3) Program length, when compared to other debt consolidation options, is much shorter. 4) Avoid filing bankruptcy. Cons: 1) Has a negative effect on your payment history (accounts must be delinquent to settle). 2) Interest and late fees accrue. 3) Collection calls may persist. 4) Creditors reserve the right to pursue legal action to collect the debt.

Posted on July 28, 2009 at 5:33 am not good. so how can i stop the collection calls while i'm settling my debt?

Posted on July 28, 2009 at 6:14 am Lallypop, as far as I know, only the passage of time can remove such marks from a consumer's credit report.

Posted on July 28, 2009 at 6:56 am Deceived- under the Faird Debt Collection Practices Act, debt collectors reserve the right to call you. There are certain things they are not permitted to do, for example, call you thirty times a day and harass you. If you are working with a debt settlement company- they will take some steps to reduce the calls as much as they can (if they are a good company of course). For example, if a debt turns over to a third party collector, they will send over a Power of Attorney (signed by you, in their contract) to the collector. After that point, the FDCPA requires the collector by law to contact the company instead of you. Unfortunately this does not apply to original creditors, so collection calls usually are worse at the beginning of a debt settlement program, and are gradually reduced as time passes.

Posted on July 30, 2009 at 3:56 am I agree with Steven, not unless you live in the state of California--where the restrictions on debt collection agencies extend to the original creditors as well.