Debt Settlement: Profit Vs. Non-Profit Company

Debt settlement is one of the most popular methods of debt relief being offered right now. This is because, for those have some assets and can make it work, it offers a way out of debt that puts one in a position ready to bounce back, unmarred by the lingering burden of bankruptcy or the imposed monthly payments of a debt consolidation plan. However, those who choose debt settlement are faced with a choice: should they go with the usual profit debt settlement companies, or risk the lower rates sometimes offered by a non profit debt settlement company?

What is the Real Difference Between the Two?

While people seem to worry quite a bit about the quality of service one can expect from a non profit debt settlement company, the reality is that there’s basically no different between one of them and a typical profit-based company. In order for a company to claim non profit status, all they have to do is not make any profit. Well, that’s easy enough to do. The majority of such companies simply take whatever extra cash they have on hand at the end of the year and pay it to the CEO as his or her salary, and voila – they’re a “non profit” company now. In other words, for the most part, “non profit” is just a marketing tactic.

Why Debt Settlement is Attractive to Creditors

That said, you can generally expect the same quality of service from a non profit debt settlement company as you would from a profit oriented one. As far as your creditors are concerned, it’s all the same to them anyway. They’re receiving some portion of your outstanding debts (as opposed to receiving nothing), and they can also benefit from massive government tax breaks on that very money, which will help them recoup their losses quite handily. It’s no wonder that debt settlement is such a popular option nowadays; it really does seem to present a scenario where everyone benefits.

Let Your Attorney Guide You

Whichever type of debt settlement company you decide to go with, though, be sure that you approach them through your attorney. If you attempt to acquire a debt settlement yourself, you’ll more than likely be given the runaround, and at the very least, your settlement terms will be less favorable than those an attorney could have gotten for you. Never try to negotiate and handle a debt settlement on your own.

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