?It?s a secret they?ve kept from you?
?You Can Settle Your Debt For Pennies On The Dollar?
?Stimulus Plan Knocks Out Credit Card Debt?
You’ve seen the ads plastered all over the Internet.
So can you really settle your debt for pennies? Well, yes and no.
First off it?s not that easy. You can?t just call up your local politician and get some stimulus funds to pay off your debts. You can?t just call up your lender and make an agreement that says ?I?ll send you half and you call it good?.
Nope, it just doesn?t happen that way.
But it is possible to settle your debts for less. Most lenders will consider taking something as opposed to getting nothing. But typically they won?t do it unless you are at least 6 months overdue and you have already been charged off.
Most debt settlement programs will require that you put a certain amount into a bank account. Once you have saved about 50% of what you owe they will then contact the lender and see if you can offer a lump sum to settle the account.
But your credit score is still tanked. It may say that the debt has been settled but it will also still say that it was originally charged off.
Also, while you are putting money into the account, creditors can still contact you, you can still be sued and you still have to deal with your lenders.
Additionally, the debt settlement company will take their fee, which is often quite sizable, off the top so it ends up costing you more than you think.
If you are in debt over your head, a debt settlement company may work for you. Or it may not. Your best bet is to talk to a legal professional and get some sound and ethical advice on your options.
Read ?Can You Settle Credit Card Debt For Pennies.?