"They were telling me they were going to be making the payments and that it was normal that the credit cards will call me. That they will have everything under control, but it was not true," said Jimena Mazier of Prior Lake. Mazier turned to a different debt settlement company two year...
If you're considering a debt settlement company, here's what you need to know about how it works and how it could impact your credit.
Always be careful when vetting your debt settlement company options, as many programs may be scams. And, not only could the strategy affect your credit score, but your creditors also might reject your offer — leaving you owing not only your original creditors, but also the debt settlement ...
No company can guarantee specific outcomes, as creditors must first agree to the terms of any settlement or relief plan. Upfront fees The FTC explicitly warns against companies that charge upfront fees, because this is illegal under U.S. law. A legitimate debt relief company will not require...
Also, be cautious of firms pushing debt settlement plans over consolidation loans, as it could negatively impact your credit score. Always research thoroughly to ensure you’re dealing with a reputable company. Beware of Fees Consolidation loans might have start-up fees, origination fees, or ...
Be sure you understand — and verify — these points before entering any agreement with a debt settlement company: What you need to qualify. What fees you will pay. Which creditors are being paid, and how much. If your debt is in collections, make sure you understand who owns the debt ...
If it's credit card debt that you are dealing with, calling your credit company to negotiate a lower interest rate or other help with your debt could help. Creditors may be willing to negotiate with you even after they write your debt off as a loss, according to the FTC. ...
Fees charged by debt settlement companies typically range from 15% to 25% of the amount of debt that is enrolled in a debt settlement program. You will still pay less than if you hadn’t gone this route. It is important to note that any legitimate company will NEVER charge upfront fees...
Consumers can try to settle their debts on their own or hire a debt settlement company to do it for them. In the latter case, you’ll pay the firm a fee that’s calculated asa percentage of your enrolled debt. Enrolled debt is the amount of debt you have when you enter the program....
If you aren’t comfortable with negotiating debt settlement on your own, then you canhire a debt settlement companyto do so on your behalf. Be aware that this will likely involve paying a fee, and can take years to complete. You may contact theFederal Trade Commissionor theNational ...