Unfortunately, debt settlement may also have negative effects on your credit score. How debt settlement companies resolve is omitted from their advertisements.
The initial step in resolving debts is to reach an agreement with a debt settler. After this, individuals pay the settlement company a monthly fee. This fee is determined by the debts owed by the individual.
The individual continues to pay the settlement company for several months while the company does nothing. When the individual has ultimately defaulted on his or her payments, the debt settlement company will negotiate a settlement amount with the individual's creditors.
At the conclusion of the process, the debt negotiation firm retains a portion of the consumer's payment and distributes the remainder to the consumer's creditors.
As a result of being forced to default on his or her debts, the individual's credit score may suffer. This means that the individual may have difficulty obtaining a loan, credit cards, financing a vehicle, or purchasing a residence for a number of years.
In many instances, bankruptcy is a simpler and less expensive way to discharge debts than debt settlement. Additionally, bankruptcy allows individuals to start their financial affairs over with a clean slate.
To determine which method of debt discharge is best for you, you may need the assistance of an experienced attorney who can help you better comprehend your options.""
" - https://www.affordablecebu.com/
