We have all seen the late night infomercial targeting viewers fretting about their poor financial situation. Typically hawked as “Eliminate your Debt for Pennies on the Dollar” plans, these programs are more appropriately known as debt settlement programs. Simply stated, with help from a credit counseling company, you would negotiate with your creditors to reach an agreement whereby you would settle your debts for far less than the outstanding balance.
Considering Debt Settlement Plans
Debt settlement plans may look like an easy solution to an impossible problem, but it’s important to understand that they come with a cost. Before going this route, you need to think very seriously about the advantages and disadvantages and how they will affect you. What’s more, you need to be sure that you can trust your debt settlement company to do as they advertise. Let’s look a little closer at what debt settlement is and what it entails.
Debt Settlement Programs
Debt settlement programs are tempting avenues to reduce your debt, but if you end up getting scammed, your best laid efforts will result in failure. As such, it is important to know who you are working with when entering into an agreement with a debt settlement company. Towards that end, watch out for warning signs and do your due diligence which should include:
- Avoiding companies that reach out to you first
- Asking lots of questions regarding fees and procedures
- Getting a firm timeline regarding when settlement will fall off your record
- Checking the Better Business Bureau
- Reading the “small print” before signing anything
Talk to Us if You Need Help with Debt Settlement
If you are thinking about getting help with debt settlement, you should reach out to the experts here at Americor Financial to discuss the full range of options available to you when it comes to devising a debt solution that will work for your individual financial situation. Here at Americor Financial, we are experienced with an array of debt reduction strategies that are designed to help you escape the tight grip of consumer debt.