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    hat they are owed. In order to get the creditors more interested in negotiating a deal, many settlement companies encourage their clients to stop paying their bills and to stop talking to the creditors altogether.

    If you stop paying your bills and t

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    Americans now have nearly four trillion dollars in credit card debt, and the average household has nearly $10,000 in credit card obligations. With interest rates that average 20% per year, this debt grows faster than overwhelmed consumers can pay it off. With interest rates rising and more and more consumers struggling to pay their bills and retire their debts, more and more consumers are considering debt settlement firms as a solution to their credit card debt. Is that a good idea?

    Debt settlement companies claim that they can negotiate with your creditors in order to obtain a settlement for a “fraction” of the amount that you actually owe them. Some of them advertise that they can save you up to 50%. Can they do that? Should you use these companies?

    Such offers should always be taken with a grain of salt. It may be possible for a company to negotiate a lower interest rate or a reduction in late fees, but it will be much more difficult to get a creditor to lower the amount of the principal that they are owed. In order to get the creditors more interested in negotiating a deal, many settlement companies encourage their clients to stop paying their bills and to stop talking to the creditors altogether.

    If you stop paying your bills and ta

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    With interest rates rising and more and more consumers struggling to pay their bills and retire their debts, more and more consumers are considering debt settlement firms as a solution to their credit card debt. Is that a good idea?

    Debt settlement companies claim that they can negotiate with your creditors in order to obtain a settlement for a “fraction” of the amount that you actually owe them. Some of them advertise that they can save you up to 50%. Can they do that? Should you use these companies?

    Such offers should always be taken with a grain of salt. It may be possible for a company to negotiate a lower interest rate or a reduction in late fees, but it will be much more difficult to get a creditor to lower the amount of the principal that they are owed. In order to get the creditors more interested in negotiating a deal, many settlement companies encourage their clients to stop paying their bills and to stop talking to the creditors altogether.

    If you stop paying your bills and t

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    companies claim that they can negotiate with your creditors in order to obtain a settlement for a “fraction” of the amount that you actually owe them. Some of them advertise that they can save you up to 50%. Can they do that? Should you use these companies?

    Such offers should always be taken with a grain of salt. It may be possible for a company to negotiate a lower interest rate or a reduction in late fees, but it will be much more difficult to get a creditor to lower the amount of the principal that they are owed. In order to get the creditors more interested in negotiating a deal, many settlement companies encourage their clients to stop paying their bills and to stop talking to the creditors altogether.

    If you stop paying your bills and t

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    ies?

    Such offers should always be taken with a grain of salt. It may be possible for a company to negotiate a lower interest rate or a reduction in late fees, but it will be much more difficult to get a creditor to lower the amount of the principal that they are owed. In order to get the creditors more interested in negotiating a deal, many settlement companies encourage their clients to stop paying their bills and to stop talking to the creditors altogether.

    If you stop paying your bills and t

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    hat they are owed. In order to get the creditors more interested in negotiating a deal, many settlement companies encourage their clients to stop paying their bills and to stop talking to the creditors altogether.

    If you stop paying your bills and talking to your creditors, several things will happen:

  • You will incur penalty fees from your creditor.
  • Your interest rate will probably go up.
  • Your failure to pay will be noted on your credit report and reflected on your credit score, making it harder for you to borrow money in the future.
  • Your creditor may be more willing to settle for less than the full amount owed.
  • Yes, you might get a reduced settlement, but it may hurt you more in the long run than if you simply paid the money that you owed. Keep in mind that these settlement firms will not work for free, either. Some of them charge fees that run into the thousands of dollars and these fees are often taken out before any money is applied to your debts.

    Before you elect to do business with a debt settlement firm, ask to see all of their terms in writing. Beware of “guaranteed” results that promise you savings of set amounts, such as “50%.” There is no way to guarantee how a particu

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