There are various professional services you can find to handle your debt, the most common of which include debt consolidation and debt settlement. Debt consolidation is when you take out a loan to consolidate and pay off all your other debts. The purpose of this type of solution is to reduce interest debts and combine several debts into one manageable monthly payment.
Debt negotiation , also known as debt settlement or credit settlement, is a different approach to debt reduction. In this case, the debtor and creditor both agree on a reduced balance that is to be regarded as payment in full. The debt is “negotiated” in exchange for a lump sum payment. During the negotiation period, the payments you make as the debtor are made to the settlement company, rather than the creditors. The settlement company typically withholds payments to the creditors.
At first, debt negotiation may seem like a good way to be rid of
your debt since it allows the debtor to pay less than what he or she owes. If
this sounds questionable to you, your instinct is correct. There are severe
consequences to debt negotiation, such as ruining your credit score. In
addition, debt negotiation leads to high fees and taxes that must be paid as a
result of the settlement. These can offset what you thought you were saving by
cutting the original debt amount.
Debt negotiation companies can be as predatory as debt collectors because they
too can profit off of your unpaid debts. Be wary of any company that promises
your debts can be paid off, or do any of the following things:
If you fall victim to any of these marauding schemes, you deserve an aggressive lawyer who will fight for your rights. Contact (844)-JIBRAEL today to discuss solutions to your debt-induced nightmare.
Debt negotiation companies can be as predatory as debt collectors since they profit off your unpaid debts. You should be wary of any company that charges fees before it settles your debt, guarantees it can make your debt disappear, and demands that you quit communicating with your creditors. If you fall victim to any of these schemes, an aggressive debt collection lawyer can fight for your rights
There are various professional services available to handle your debt. The most common are debt consolidation and debt settlement. Debt consolidation is when you take out a loan to consolidate and pay off your other debts, while debt settlement is when the debtor and creditor both agree on a reduced balance in exchange for a lump-sum payment.
In a debt negotiation, your debtor and creditor agree on a reduced balance as payment in full, making the debt something that is “negotiated” in exchange for a lump-sum payment. There are severe consequences to debt negotiation, including damaging your credit score. It also leads to high fees and taxes that must be paid as a result of the settlement.
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