Debt Settlement suggest by Debt Relief Group

Hi Suzanne

Welcome to the forums.

Before you make any decision about your credit file, it is very important for you to understand the concept of debt settlement.

Debt settlement process is also known as debt negotiation. It is designed thinking about those people who find it tough to handle the debt consolidation programs. If you are not able to afford the minimum payments of the debt consolidation program or you have difficulties in paying the bills of the last three months, you can use the service of the settlement program for solving your credit and debt related problems.

This program will serve the benefit of not making instant payment to your creditors. When you enroll in the settlement program, monthly payments are taken from you and kept in either your account or their account. You keep contributing towards your debt in easy installments.

The debt negotiation company will be negotiating with your creditors to reduce the total amount of your debt by around 40-50%. Once the creditor gives his consent, the whole debt amount is paid to them through this program.

The most important thing that you should keep in mind is that the debt settlement program hurts your credit score because it is just the last step before filing for bankruptcy. But the consultants working in the debt negotiation company tries to protect the interest of the consumers by asking the creditors to report their accounts as paid in full to the credit bureaus. The credit scores are hurt if the accounts are shown as Settled in the credit report. This negative remark stays in the credit report for as long as 7 years.

There are some companies which offer credit repair packages to the consumers so that the negative remarks caused by the debt negotiation program are removed from the credit report.

http://www.debtconsolidationcare.com/debt-settlement.html

To avoid the risk of such a program, you can take the advantage of the consolidation program. This program is also designed to improve your credit file by offering lower monthly payments to your creditors at lower rate of interest.

A considerable portion of your money is saved each month through this program because this monthly payment is lower than what the credit card companies' offer to you.

After enrolling in the debt consolidation program, all the harassing calls of the creditors and the collection agents are stopped. They will not call you anymore until and unless you miss the new monthly payment in this program.
All the credit card accounts that are included in this program will be frozen or closed with the intention that you don't build up new debt.

This program is beneficial to you if you have high interest rates or have high credit card debts which are becoming very difficult to be managed. This program serves to make only one payment to all the debts that are included in the program.

http://www.debtconsolidationcare.com/benefits.html

You can compare both the programs and then only make the decisions about improving your credit file. In my honest opinion, debt consolidation will be a better choice rather than the settlement program.

Regards
Roxette