Are Debt Settlement Offers Too Good to be True?

So you’ve maxed out every credit card in your wallet, and you’re not sure where to turn next. All you can think about is getting rid of your ever-increasing debt. The banks won’t help you, the loan companies have stopped returning your phone calls, and the credit card companies run away screaming when they see the state of your credit score.

But you have one final thing left to try. You’ve seen commercials for debt-settlement agencies that can help you by giving you one lump sum, which you believe you could use to settle every debt you have and start again with a clean slate. 

So are these Debt Settlement offers too good to be true?

The most important (and saddest) thing to remember is that people who are fixated on overcoming debt are extremely vulnerable. Many look for any solution to their financial woes, and debt-settlement certainly sounds like a good one. However, nothing is easy, and that includes overcoming debt.

For starters, overcoming debt through debt settlement isn’t right for everyone. For example, if you’re bound for bankruptcy, you might be eligible for settlement. If not, settlement won’t be your best option.

Know that if you accept one of these magic offers, your credit will get far, far worse. If you’re incredibly behind on payments, then credit companies will settle. Settling hurts your credit even more. Overcoming debt will probably be much easier if you just work with the credit card companies to come up with a payment plan that is realistic and that you can stick to.

Additionally, if you’re overcoming debt, know that many operations are really scams and they are against the law. The laws are state mandated, so it might be illegal where you live for a company to require certain fees. Some companies only want to take advantage of people who are vulnerable to exploitation, and hope that you won’t check your local laws before applying for their bogus offers.

Also be aware that while you’re trying to settle your debt, you might get sued by any company, bank or credit card company that you owe money to. Debt collectors will keep calling and even if you tell them that you’re working on settling, collectors will continue to call. An expensive lawsuit is the last thing someone who is overcoming debt needs.

To learn more about about debt settlement, it’s best to contact a debt settlement or bankruptcy attorney in your area to discuss your legal options. Get informed, and you’ll be well ahead of the game no matter which option you decide to take.