31 Ways to compare and evaluate debt consolidation and settlement
|#||Questions||Debt Consolidation||Debt Settlement|
|1.||Is free budget counseling offered?|
|2.||Will your outstanding balances get reduced?|
|3.||Can the interest rates on your debts get reduced?|
|4.||Does it affect your credit report negatively?|
|5.||Are creditors/collection agencies legally bound to stop calling you?|
|6.||Is this a viable option to repay your unsecured debts?|
|7.||Will you be able to repay your secured debts?|
|8.||Do you need to pay professional fees?|
|9.||Can you deal with creditors yourself?|
|10.||Are there any tax implications?||?
You'll be liable to pay tax on the total amount saved through settlement. The amount you save is considered to be income by the IRS.
|11.||Can you become debt free within a month?|
|12.||Can a creditor/collection agency sue you?|
|13.||Do you need to have a valuable asset?|
|14.||Is it true that you can repay bills with single monthly payments?|
|15.||Do you need to make lumpsum payment(s)?|
|16.||Do you have to take help from a lawyer?|
|17.||Is it a suitable option to repay private student loans?|
|18.||Is agreement signing mandatory?||?
You should always sign a written agreement to avoid unnecessary disputes in future. Read the agreement carefully. Clarify all your doubts before signing the agreement.
Draw up a contract with the settlement company. Check the terms and conditions of the contract before signing it. Read the fine print section carefully.
|19.||Can it remove debts incurred from community properties?|
|20.||Can you get rid of debt legally?|
|21.||Does it help repay low debt amount?|
|22.||Can you get help if you're delinquent on loans?||?
Though it varies from one creditor to another, yet they usually don't agree to reduce interest rates when you're already delinquent on loans.
Usually, creditors agree to settle your debts if you're delinquent on loans.
|23.||Can you become a victim of wage garnishment?|
|24.||Is there any role of trust account?|
|25.||Is it better than filing a bankruptcy?|
|26.||Can you repay business debts?|
|27.||Does it help repay payday loans?|
|28.||Can you cancel the program midway?|
|29.||Can you pay off one of multiple accounts?|
|30.||Can it help stop foreclosure proceedings?|
|31.||Does it help pay off medical bills?|