Debt Consolidation – Debt Settlement, What’s the Difference?

Questions by Clients on Debt Settlement…

Lawrence,

Thanks for the gesture. I see the services you offer has expanded into Debt Settlement. What are the details of using this? I have a handful of debts that I’d like to settle, and was going to just do it myself, but if you have a service that can do this for me, great.

Thanks,

Bryce,

yes, we have Debt Settlement which is very unique in the industry.  The problem with doing it yourself is that is causes your credit scores to go down for a number of years until the newness of the paid off debt wears off… usually 7 plus years… great huh?

The problem with all other Debt Consolidation, Debt or Credit Counseling services is that they are worse than a Bankruptcy in how they affect credit scores. Not only do they not reduce the debt, it is actually increased because of their fees. Plus the length of time is increased because of the increase in debt by not settling the debt for a lower amount and adding on fees. Then your credit scores are damaged for the length of time to pay off the debt and an additional 7 years that the credit bureaus keep the negatives on for.

Even if you could do it yourself or find a company that would settle your debt at a lower amount, you still have the negatives on your credit report for 7 years and the lower scores means higher interest rates and there go all your savings out the window.

Our attorney firm, National Credit Federation has a Debt Settlement company called Smart Debt Relief that settles the debt for 50 to 80% of the original amount and when the debt is paid for, we remove the negative off the credit report and it is as if it never happened. Lowering costs and fees all along the way.  It also never reports to the credit bureaus anything additional to the original negative debt.  The end result is a much faster, cleaner way to pay off debt that no one else can touch. And you walk away with debt off your back and much higher credit scores…

The only draw backs are that you will need a minimum of $10k in unsecured debt to get started. If you are close, no problem… we can handle it…

Also, there is a 19% fee that is charged but all said and done, you pay far less in debt, fees and time, than if you tried to do it yourself or use another Debt Consolidation company… so, it really becomes an asset instead of a draw back… Hmmmm… I like it…

Lawrence M Law has over 25 years experience in financial services in credit repair, debt settlement, mortgage lending, real estate investing and financial help. If you need his services or would like to get a Free Credit or Financial Analysis, call 801-69-9443 or Click On This Link