When you need to settle outstanding debts, you have several options in deciding which service is best for you.
Depending on the type of debt settlement service you choose, the fees can differ drastically.
Consumer Credit Counseling Services: A counselor will contact your lender and attempt to make a deal on the money you owe them.
The credit counselor will try to get a reduction in the total amount of up to fifty percent or more to settle the debt.
Since your creditor wants to get at least a portion of the money owed returned to them, they most often will pay a fee to the counseling service.
You, the debtor, will be charged a fee of approximately five to forty-five dollars every month until the debt is paid off.
Debt Consolidation Companies: You will probably be paying all of the fees incurred for this service.
If the fees are reasonable and laid out over time, it can be beneficial to you and your peace of mind.
Many of these companies are of nonprofit origin and are working on your behalf.
Their fees are based solely upon what it costs them to administer your account without compensation to themselves.
However, most of these companies require funds up front and they can be hefty.
An honest debt consolidation company will charge a small fee of about seventy-five dollars to enroll in their program, along with a monthly fee based on the amount of debt.
Some consolidation companies will try to get the amount you owe reduced, but most will not offer this to the consumer if debt settlement is not a part of their services.
Debt Settlement Lawyer: Retaining the services of lawyer to get your debt settled can be pricey.
Their fees to settle your debt can range from five-hundred to one-thousand dollars.
A clear example is this.
Your indebtedness to creditors is $1500 and your lawyer negotiates a reduction of this amount to $900.
The lawyer charges you a fee of $900 for a grand total of $1800 to handle your case.
Undoubtedly, it will cost you more than what you originally owed to your creditors.
If you owe a few thousand dollars to lenders, it would be in your best interest to employ the services of a debt settlement company who can not only get a decrease of your debt, but can most likely get interest rates lowered, as well as reduced monthly payments to settle your financial obligations.
Depending on the type of debt settlement service you choose, the fees can differ drastically.
Consumer Credit Counseling Services: A counselor will contact your lender and attempt to make a deal on the money you owe them.
The credit counselor will try to get a reduction in the total amount of up to fifty percent or more to settle the debt.
Since your creditor wants to get at least a portion of the money owed returned to them, they most often will pay a fee to the counseling service.
You, the debtor, will be charged a fee of approximately five to forty-five dollars every month until the debt is paid off.
Debt Consolidation Companies: You will probably be paying all of the fees incurred for this service.
If the fees are reasonable and laid out over time, it can be beneficial to you and your peace of mind.
Many of these companies are of nonprofit origin and are working on your behalf.
Their fees are based solely upon what it costs them to administer your account without compensation to themselves.
However, most of these companies require funds up front and they can be hefty.
An honest debt consolidation company will charge a small fee of about seventy-five dollars to enroll in their program, along with a monthly fee based on the amount of debt.
Some consolidation companies will try to get the amount you owe reduced, but most will not offer this to the consumer if debt settlement is not a part of their services.
Debt Settlement Lawyer: Retaining the services of lawyer to get your debt settled can be pricey.
Their fees to settle your debt can range from five-hundred to one-thousand dollars.
A clear example is this.
Your indebtedness to creditors is $1500 and your lawyer negotiates a reduction of this amount to $900.
The lawyer charges you a fee of $900 for a grand total of $1800 to handle your case.
Undoubtedly, it will cost you more than what you originally owed to your creditors.
If you owe a few thousand dollars to lenders, it would be in your best interest to employ the services of a debt settlement company who can not only get a decrease of your debt, but can most likely get interest rates lowered, as well as reduced monthly payments to settle your financial obligations.
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