What is Debt Settlement?
What exactly is debt settlement?
When a consumer files for bankruptcy most creditors receive no money, so before it gets to that point, creditors are willing to accept a much lesser amount in order to recoup some of their money. Settlement is usually 40 – 60 % of the original debt owed. A debt settlement company can offer to make the arrangements, in which you pay a monthly fee that you can afford. If you can offer a lump sum, you can generally save more money. You won’t have to deal with your creditors anymore. The debt settlement company will represent you.
