Debt settlement – Does it really help you recover from a financial ailment?
When you’re suffering from critical financial diseases, debt settlement seems to be the ultimate medicine to get fit again. You rush to the debt settlement company in the hope that the debt negotiators will be able to cure your disease. You assume that the debt settlement companies will work for your best interest, but is that the case really?
Have you ever wondered how the debt settlement companies can give you the best medicine when most of them don’t even offer legal assistance? Have you ever thought the settlement companies are ultimately here for doing business and generating revenue? You may not have asked yourself these basic questions in the past. However, if you’re ailing and need to get back into the right financial shape, then it’s best you start getting answers to your questions.
Debt settlement– Why is it not good for you?
Benjamin Franklin has once said – “Creditors have better memories than debtors”. If that is true, then it is equally true that debt negotiators have sharp brains. They’ll only tell you those things which will help them to generate revenue. This is one reason why settlement is not necessarily good for you. Check out some other reasons why settlement is not the best medicine for you.
1. Settlement companies don’t offer legal help: Debt settlement companies don’t offer any legal assistance to you. If you have been served summons by creditors or debt collectors, then the settlement companies won’t be able to help you out. They can’t even help you deal with the judgment related issues.
2. Settlement companies don’t offer best solution: Settlement is not always the best solution for you. It might be the case that your financial health is in a terrible condition. In such a situation, bankruptcy may be the right debt relief option for you. However, in most cases, settlement companies don’t talk about bankruptcy only. So, how can they offer you the best help?
3. Creditors are not always interested in settlement firms: Several creditors don’t give any importance to the settlement companies. They don’t even exist for the creditors. They are rather interested in working with the debtors straightway.
4. Settlement companies won’t help you with 1099C form: You don’t get complete financial freedom after settling your debts. This is because you need to pay an amount to the IRS post settlement. The amount will depend on how much you’ve saved through settlement. You’ll get 1099C form from creditors. Settlement companies won’t offer you any help regarding this. You have to handle the entire thing on your own.
It is not that all the settlement companies are fraudsters. There are settlement companies that offer genuine help and assistance to debtors. However, given the track record of settlement companies, the lies they tell to the debtors; it’s hard to trust the debt relief firms. If you are really in deep financial problems, then the best option will be to deal with creditors on your own. You can also consult a lawyer in this case. At least, he can help you to navigate through the legal process.