There is a lot of discussion about the concept of debt settlement, and there are even firms and companies that market themselves as debt settlement firms. In reality, before you get into the process of debt settlement, you need to understand what you are getting into. You also need to understand what makes a bad debt settlement deal or a bad debt settlement company.
Debt settlement simply involves settling debt for less. In other words, you make an offer to a creditor wherein you agree to pay them something, but less than the full balance due. Creditors may agree if they fear they won't otherwise get anything at all, and you benefit because you can avoid bankruptcy but still pay less back than the total due. You can arrange a debt settlement yourself or get help doing it, but either way, you need to be aware of the signs of a bad debt settlement deal.
There are a few signs of a bad deal you should watch out for:
To ensure you aren't getting a bad debt settlement deal, you need to talk to a lawyer. Your attorney can help negotiate with creditors and can assist you in reviewing any debt settlement deal to make sure that your interests are actually being protected.