When you are in debt, you often feel like there is no way out. That is when some people turn to Debt Settlement companies. However, you have to be careful. There are many of these companies that offer Debt Settlement, that are really nothing more then a ripoff. They will take your money and not pay the bills that they are suppose to take car of.
At this point, you may be asking,
"What is debt settlement?"
Well, simply put, debt settlement is when you hire a 3rd party to help you dig out of the debt hole. Here is how it works. You are so far in debt that, bill collectors are calling you every day. Sometimes, several times a day. In fact, they may be calling so much tat they are harassing you. You have no way, paying all the money that you owe. So you turn to a Debt Settlement Company, to act on your behalf. The company then makes contacts each of your creditors to negotiate a lower payment and interest. This is called the Debt Negotiation. They then combine all the payments together, and you pay them one (1) lower payment to them, in which they in turn are suppose to pay each of your creditors.
The process will leave a bad mark on your credit, but if you are behind on your debts, then your credit is already pretty well shot. You will also have to cut up all your credit cards, as they will be canceled. In the end, if you found a legitimate debt Relief Company, you WILL have Debt Relief, and you will have transitioned to a cash only lifestyle.
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