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Pros & Cons of Debt Settlement


Debt settlement may seem appealing when you're in lots of debt. Paying your creditors less than what you owe seems like an easy way out. If debt settlement is successful, you will repay your debts in much less time. You could also get relief from overwhelming debts & avoid bankruptcy.

Although debt settlement sometimes works, it’s extremely risky. You’ll have to stop paying your creditors. You’ll put money into a savings account with a debt settlement company instead. As a result, creditors can make harassing phone calls to you. Debt settlement can also significantly lower your credit score. This is because you are no longer paying your debt. And, your creditors aren’t obligated to accept the debt settlement agreement. If your debt is forgiven, you may have to pay taxes on that amount. Usually, you’ll pay as much as 25% of the amount you saved.

At ACCC, we offer alternatives to debt settlement negotiation. As a nonprofit organization, we provide free credit counseling. We also offer low-cost debt management services & financial education. Call us today and we’ll help you decide which approach is right for you!

American Consumer Credit Counseling (ACCC) provides non-profit credit counseling, debt management services, credit relief and debt relief help to consumers nationwide. Our free credit counseling services help individuals and families learn how to manage debt more effectively and how to get rid of debt more quickly. Our certified credit counselors show consumers the various ways to pay off debt, and we offer affordable debt management programs for getting rid of credit card debt by consolidating debt payments. Our debt negotiation services help with managing credit card debt and paying off debt more quickly by reducing interest rates and finance charges. And our financial education services help consumers manage money more effectively, find reputable debt consolidation companies and answer questions like "How do you consolidate debt?"

American Consumer Credit Counseling - Consolidate Debts - Better Business Bureau American Consumer Credit Counseling - Consolidate Debts - Mass Housing Approved National Industry Standards for Homeownership Education and Counseling American Consumer Credit Counseling - Consolidate Debts  - Council on Accreditation American Consumer Credit Counseling - Consolidate Debts  - NFCC Member