http://www.beverlyhillsdebtreduction.com/debt-settlement/ Is debt settlement the best way to get out of debt? If you ask the Magic 8 Ball, the reply is, "My Sources Say No." en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 Many people with a lot of credit card debt choose debt settlement as their preferred method of debt reduction. While it does seem attractive, is it really the best way to go? Depends on the type of person you are and how much credit card debt settlement you really need. Settling Up When you enroll in a debt settlement program, a debt settlement professional who's skilled in the art of negotiation will contact your creditors to get you reductions in your balances. These redutions are usually in the neighborhood of 60-80% off what you owe. This is the grey area. This is where your conscious needs to kick in. While reductions are good, when debt settlement companies are willing to take a chance, reductions as deep as 80% can only mean one thing--you're paying back less that what you actually spent. In essence, it's like stealing. Some people might try to justify this by saying that credit card companies steal from consumers by charging high interest rates and finance charges, then tack on annual fees, late fees, over-the-limit fees, etc., so the consumer is really the one being robbed by the credit card companies and reductions to get the interest rates lowered and fees removed are fair. (In fact, this is what is done through a debt consolidation program.) If you opt to go the debt settlement route, realize that you'll need to pay off the balance remaining after the reductions pretty much immediately. So sell that Jag! Hock that new diamond necklace! Why? Because your creditors figure that if they're giving you this much of a break, they want their money now! If you can't get your hands on the kind of money you'll need, there are some debt settlement companies that will allow you to pay over time (usually 1-3 years). Another reason debt settlement isn't the best way to go is that it can have a negative effect on your credit, similar to that of a late payment. You don't want to mess with your credit score! There are options other than debt settlement that don't effect your credit like a debt consolidation loan or mortgage. Contact a debt management company to see if you qualify for either one of these programs. Then contact a debt settlement service to learn more about that and compare those programs to a debt settlement program. Whatever you do, make an informed decision. Sat, 26 Jul 2008 15:00:00 EDT http://www.beverlyhillsdebtreduction.com/debt-settlement/debt-settlement-companies.html Debt settlement companies wont eliminate all your financial fat, but they will take care of a lot. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 http://www.beverlyhillsdebtreduction.com/debt-settlement/debt-settlement-service.html A debt settlement service can get you drastic reductions off of what you owe. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 http://www.beverlyhillsdebtreduction.com/debt-settlement/debt-settlement-program.html Is a debt settlement program right for you? en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 http://www.beverlyhillsdebtreduction.com/debt-settlement/credit-card-debt-settlement.html If you have found yourself buried in credit card debts, maybe it's time to consider credit card debt settlement. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0