3 Things a Debt Settlement Company Can't Commit - By: J.J. Yong

Nowadays, debt settlement firms are everywhere in the United States. Some are genuine but some of unethical. If you intend to get rid of your debt through debt negotiation, I would like to highlight 3 main things to you which a settlement company can't commit. In case you are very concern about these matters, this financial solution may not be the right choice for you.

-Your credit score

When the debt negotiation starts, the settlement company normally asks you to stop making payments to your creditors. The representative from the company will only contact your creditors when your past due is more than 3 months. In general, any late payment or missed payment will affect your credit score. In this situation, the creditors normally report to the credit bureau and your credit rating will be badly affected. To be frank, no service provider dares to guarantee that the clients' credit score will be well protected.

-Your credit report

Seriously speaking, when a settlement process is completed, it will be stated on a debtor's credit file and this negative item will be remained on the file for 7 years. This statement will definitely have some effect on your future borrowing. No settlement firm can guarantee that all their clients will be able to obtain new credit easily in the future.

-The date of completion

The duration taken for settling a debt is about 2 years. There is no standard duration for debt negotiation because it takes time to bargain with the creditors. Hence, there is no fixed date provided by the settlement company on the date of completion.

If a service provider is able to promise you that the THREE items mentioned above, you are advised to stay away from this company. I would say it is 100% a scam.

About the Author

For more information about debt settlement letter and debt settlement companies, visit DebtSettlementEssentials.com.

Article Directory Source: http://www.articlerich.com/profile/J-J--Yong/44717

Additional Articles From - Home | Finance | Personal finance