These companies are known as debt settlement companies. They help in settling the debt with the creditor by reducing it by 40-60% in case you are finding it difficult to pay the entire debt amount. They offer a debt settlement program. Through this program the companies negotiate with the creditor on your behalf regarding the debt you owe them. Finally your debt gets reduced. The debt settlement companies charge a fee for this service.
I read somewhere on this forum that these debt relief companys tell you NOT to pay your creditors for 6 months. Then when the creditors consider you as "bad" debt then these companys negotiate with the creditors so they can get at least a partial payment. the end result of this is your credit history takes a couple of hits and your stuck with those non-payment notes on your history.
Is this true? If this is NOT the case can anyone recomend a few debt relief companys websites?
Hi Cubfan,
These companies are known as debt settlement companies. They help in settling the debt with the creditor by reducing it by 40-60% in case you are finding it difficult to pay the entire debt amount. They offer a debt settlement program. Through this program the companies negotiate with the creditor on your behalf regarding the debt you owe them. Finally your debt gets reduced. The debt settlement companies charge a fee for this service.
I read somewhere on this forum that these debt relief companys tell you NOT to pay your creditors for 6 months. Then when the creditors consider you as "bad" debt then these companys negotiate with the creditors so they can get at least a partial payment. the end result of this is your credit history takes a couple of hits and your stuck with those non-payment notes on your history.
Is this true? If this is NOT the case can anyone recomend a few debt relief companys websites?
thanks for hte response