Whenever people look for debt relief companies, they don’t know whether to go with debt settlement, credit consolidation or something else. What people need to understand is the difference in between debt settlement companies with other debt relief companies. Debt settlement programs are the only form of debt relief that relieve you of a percentage of your principle and all the interest.
When people hear that a program can reduce so much debt, they are believe it’s too good to be true or that it’s equivalent to bankruptcy, both of which are untrue. Debt settlement is possible because creditors agree to reduce debts when they haven’t been paid for a while and do not want to spend the resources to take a debtor to court. This is usually true with individual debts under $20,000.
Also, it is nowhere near as bad as bankruptcy because a debt settlement program does NOT come up on your credit report and doesn’t leave a nasty blemish for 7-10 years. You do take a hit on your score for being delinquent, but that’s easily repairable and won’t take long.
