Although there are many advantages of using a debt relief service,there are disadvantages too. However fairly a debt settlement may be reached it is bound to have some effect on a debtor’s credit score. Hence it is always better to repay the loans in full. But if the debtor’s current financial situation is such that bankruptcy is the only other alternative then it is best to opt for a debt settlement program. This is because in the case of bankruptcy,the debtor’s credit scores are damaged almost irreparably. In case of a debt settlement the credit scores will be damaged but can be restored eventually.https://www.floridadebtreliefhelp.com/boca-raton-fl/
Choosing the right settlement company takes a lot of research. But most debtors being harassed by the creditors and their collection agencies do not take the time to do so. As a result they end up in the hands of fraudulent companies which cheat them of a fairly large amount of money. On the other hand following the advice of these fraudulent companies can damage the debtor’s credit score even further. Not only this,the debtor may also end up in litigation with the creditor.
Another disadvantage of opting for a debt settlement company is that he or she will have to pay the fees charged by this company for its services. This amount can be fairly large as it is usually 10% of the settled amount. On the other hand if the debtors try to settle the debt themselves,they will save on this amount. But at the same time will have to deal with all the creditors themselves. This can be very stressful because an average debtor has many loans like car loan,home loan and consumer loans etc. If they hire a settlement company they do not have to deal with any creditor.
It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified.