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Debt Settlement Companies: Do You Need One?

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By: mariemegge
on 15th Jul,2015

The answers were all misleading and could potentially cost this consumer thousands of dollars.
Debt Settlement Companies Do You Need One


If you're in debt, and struggling to make your monthly payments there's a very good chance that you've investigated your options, and have come to the conclusion that debt settlement is a good fit for you. So, you're probably left wondering if it is necessary to hire a debt settlement company to assist you with the task of negotiating with your creditors.

Honestly, I'm probably biased, but I've seen a lot of misleading information on the Internet from people who have settled their debt without the assistance of debt settlement companies, and the outcome isn't very impressive - even if you take into consideration the fees that could potentially be charged by debt settlement companies.

As a matter of fact, what leads me to write this article today is a direct result of what I recently read on the Internet, whereby a consumer was asking whether or not a settlement offer from Bank of America was the best that she could expect. The answers were all misleading and could potentially cost this consumer thousands of dollars.

So, let's first examine the possibility of you negotiating with your creditors to reach settlement agreements for your outstanding accounts, without the assistance of a debt settlement company. Yes, you can do this, but again, it could end up costing you. You see, there are many individuals who are attempting to settle their debt, but end up getting scared because they're not sure if the threat of legal action is real or not. When they receive a threatening letter from a creditor they're not sure what the outcome is going to be, and as a result, they jump into a settlement agreement which is totally unnecessary. In other cases, some consumers don't take these threats seriously (when they should have), and end up getting served a summons due to a delinquent debt.

In most cases, if a professional debt settlement company is hired, these issues aren't issues at all - because most debt settlement companies know how to "read between the lines" to determine when it is best to reach the lowest possible settlement with creditors. Additionally, debt settlement companies know, from past experience, when the threat of legal action is real, and when it is just that - a threat.

I understand that some people are concerned with the fees they may have to pay debt settlement companies, but based on what consumers are saying they're settling their debt for, the fees would largely outweigh the money it's going to cost you to settle your debt on your own. Not only can you eliminate the hassle, headaches, worries and lost sleep when attempting debt settlement on your own, but when you pay professional debt settlement companies their fees, you're actually going to end up saving money in the end.

Now, that being said, please know that there are debt settlement companies that charge exorbitant fees (as much as 25%-35% of a person's overall debt), and this is definitely a concern. But, if you are able to find a debt settlement company that charges its fees based on performance, you'll end up saving thousands of dollars. The performance-based fee mode is the best way to go; usually these debt settlement companies charge 15%-25% of the amount of money you save. Also, these fees are not expected until after you have gotten satisfactory results for both you and your creditors.

In summary, yes, you can settle your debt on your own, but in the end it simply is not worth it. The do-it-yourself method can potentially lead to problems, such as lawsuits and spending much more than you need to to successfully resolve your debt. And again, please keep in mind that professional debt settlement companies do this every single day, and they know what to expect with each creditor, collection agency and law firm out there.

I wish you the very best in putting your debt behind you.

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