Debt settlement services are a tool just like debt and you need to know how to use it to decide if it’s your best option.
Debt settlement providers are companies that offer to negotiate your debt with creditors, getting creditors to reduce the amount you owe usually in exchange for one lump-sum payment.
Debt settlement negotiation can be preferable as it does not require you to file bankruptcy, which may damage your credit score.
Debt settlement does work. Yes, there are drawbacks but if it is your only option before bankruptcy then it’s the better alternative.
After an interview with the debt settlement provider, you’ll open a savings account that will go to funding your settlement payoff.
Debt settlement providers can’t guarantee to reduce your debt with every creditor.