The Truth About Debt Settlement Companies

The Truth About Debt Settlement CompaniesDon’t Believe The Rumors.

Many people look down on debt settlement as if it is a scam. I will explain to you why you shouldn’t believe the hype of these rumors, but first, let’s take a look at what debt settlement really is.

To settle your debt means that you take the outstanding amount that you owe to a lender, and you negotiate down the terms to make a pay-off for less than the original borrowed amount.

That’s it in a nut-shell. 

Why does debt settlement even exist legally if it is considered to be such a scam?

Well, companies that offer debt settlement provide a service to a borrower for the simple reason that an experienced professional can always do it better. They have the resources and knowledge to accommodate a client’s needs from A-Z. 

For example, they have access to credit history, they have relationships with lenders and access to an open line of direct communication. They also have all of the forms, proper calculations and logistics worked out already, including a payment processor that allows you to have an active escrow account to store your payments until you have saved enough to pay off an entire debt. Along with being able to provide a client with legal protection, a personal account manager, a negotiations team, and a full customer support team ready to assist at any time. 

Debt settlement companies offer a full service just like any other business for clients who may not understand the process, some who may not have the time and energy to deal with their own debt, and mostly for the people that are not financially disciplined enough to save money accordingly to pay off their debts.

The debt settlement process is not easy to go at alone and without proper knowledge. It can be very time consuming. A lot of time will need to be spent on the phone trying to reach out to lenders that have closed the door on you for not sticking to your payment agreement.

When using any traditional service, it is normal that companies collect a small fee upfront, however, debt settlement only collects fees as you move through the process and as they continue to do the heavy lifting for you, after all the company has overhead and needs to pay all of the employees that will be assisting you along the way. 

Debt settlement is a great option for borrowers that are behind in payments, in collections, and even on their way towards bankruptcy. At this point, there are very few options available for a delinquent borrower to get out of debt completely. 

So is it a scam, absolutely not. Is it helpful and beneficial to work with a reputable professional debt resolution company, yes. They will have your best interest at heart as your success is their success. 

So if you have been contemplating what you are going to do with all of the debt that you have accumulated and can no longer pay on time, debt settlement is the best option for you. When you speak to a debt relief specialist about your unsecured debt like payday loans, installment loans, credit card bills and even repossessions, they will help you calculate and arrange your budget to find an affordable monthly payment so that you can begin your journey to becoming debt free. 

A debt settlement company makes it easy for you to handle your debt and to live your life with less stress and worry about the future. 

Is debt settlement something you can do yourself, yes, however, it is not suggested for the many reasons that I have stated. You run the risk of missing a deadline, or misunderstanding an agreement, possibly even making promises with a lender that you cannot keep, and if you do not stay on top of the process, you may lose your chance all together to settle your debts. If you miss a small detail, the lender can retract and stick you to the full balance of what you owe. 

So overall, working with a debt settlement company is a great option. Do your research and find a company that cares about your wellbeing like Encompass Recovery Group. Call them today and learn your options. If you are currently struggling with outstanding debt, then you really have nothing to lose and everything to gain.