If you are looking for debt relief, one of the options you may be considering is debt settlement. Some people may have reservations about using this method because they don’t understand how the process works. We know, however, that debt settlement may be the right choice for individuals who are unable to make payments on their debt. Many Freedom Debt Relief clients have resolved their debts in as little as 24-48 months, often for less than what they owed.
We’ll share the top debt settlement myths and clear up some common misconceptions.
Myth: I can (always) do it myself.
Fact: Although some consumers are disciplined enough to stay on track, negotiate with creditors, and resolve their debts on their own, many people may be able to benefit from professional help. The right debt relief partner has the experience and proper tools to help you achieve your debt reduction goals.
Myth: All debt settlement companies are the same.
Fact: This couldn’t be further from the truth. Unfortunately, there are companies out there who scam honest, hard-working people. Selecting a debt settlement company is an important decision and one that you need to research carefully. A bad company can end up costing you more than you originally owed, but a reputable company can potentially save you both time and money.
Myth: I can eliminate my student loan and/or tax debts.
Fact: Debt settlement focuses on unsecured debt. There may not be proper debt relief options that will completely eradicate these two types of debt.
Myth: Creditors will never agree to debt settlement.
Fact: Though creditors do not have to agree to settlement requests, there are many who would be willing to work with you to reach a solution. Why? It’s simple – most creditors would rather get paid something than nothing.
Myth: Debt settlement programs are expensive.
Fact: A reputable company will evaluate your situation first and see if debt settlement is even a viable option. If you qualify, they will work with you to come up with a manageable plan. Though there is a cost to using a settlement service, the savings you may receive could outweigh the costs.
Myth: It’s just shifting debt around.
Fact: This may be true for debt consolidation loans, but it’s not true for debt settlement. Debt settlement does not involve or require obtaining a new loan or getting further entrapped in debt.
Settlement programs are specifically designed to help people who are behind in paying their debts or cannot pay the minimum monthly payments. If you are looking for debt relief help, weigh out all of your options, and figure out if debt settlement is the right choice for you.