In a perfect world, almost every single person would prefer not to have to use debt settlement tactics. Most of us have a sense of pride and honor and have no problem paying back what we borrow. Face it, debt settlement is going to be a much better option than a bankruptcy. Bankruptcies are so damaging to your credit. Granted, settling debt will have an impact on your credit as well, but not nearly as bad a BK. Remember, a BK will stay on your credit report for 10 years (not the traditional 7 years like most items).
There are truly times when we face real hardships and we may not have a choice but to use these sort of tactics. The best thing about debt settlement is that we DO NOT need a debt settlement company to execute a successful negotiation.
You see, there are step by step plans that show consumers exactly what to do to settle debt ourselves and skip paying THOUSANDS OF DOLLARS to a company that specializes in eliminating debt.
Most companies that do this sort of thing offer a guarantee that they will wipe out at least half your debt. You select a payment plan and if you owe $30,000.00, then your total payments will equal about $15,000.00.
So, they guarantee that they will settle for $15,000.00, more than likely they will settle for $6,000 to $9,000. The spread between what they settle for and the $15,000 dollars they guaranteed you they would settle for is their profit. They would make $6,000 to $9,000 (varies from case to case).
If you can follow a step by step plan, you can keep the debt settlement companies WOULD BE PROFITS for yourself. Not a bad deal!
Source by S. L. Welch