Debt Settlement Companies: Should You Trust Them?

Many debtors work with debt settlement companies, being required to pay the money via escrow and once the fund reaches a certain amount, the company will try to settle the accounts for them. Unfortunately, most of the payments debtors make only covers the extra service charge and other fees that debt settlement companies make them pay. If you have been paying less than a thousand dollars for ten months and your debt, settlement company hasn’t even contacted your creditor, who gets all the benefits? You, your creditor, or the debt settlement company? The answer is pretty obvious.

While you pay hundreds of dollars for almost a year, your creditor will get tired of waiting and your debt settlement company will continuously collect all your hard-earned money. It’s not surprising that many debtors lose all their cash after their creditors filed credit card lawsuit. Most debt settlement companies are in it for the money, so debtors need to tread carefully before they agree into something that these companies offer. If the offer is too good to be true, it probably is.

You are much better off handling your legal and financial problems yourself rather than trusting a debt settlement company to pool all your cash and work with your creditor. After all, why settle working with a middle person when you and your creditor can strike a deal on your own?

It’s no surprise that many debt settlement companies are being deemed as a scam or at best, totally incompetent in terms of settling the debt. When in doubt, it is always better to check other options you have. You can either hire an attorney to deal with the credit card lawsuit, in case your creditor pressed charges against you, or if not, get the attorney to work out a sensible repayment deal with the creditor.

On the other hand, if you cannot afford a lawyer, you can always research on how to properly negotiate a debt settlement with your creditor directly. Don’t wait until your creditor decides to file a credit card lawsuit, give the right person a call, initiate the negotiations and propose a payment plan you can afford.

However, if your creditor filed a credit card lawsuit, you can always check online or purchase eBooks on how to properly represent yourself in court. Familiarize yourself about state laws, federal laws and court rules in your area if you are presenting yourself  Pro Se, in court.