Debt Settlement? Think Again!

Thinking about debt settlement? 

A majority of Americans are stressed over finances! I can get stressed just reading, thinking, and talking about debt so much! Especially when I know desperate people are tempted to make bad decisions, like debt settlement. Settlement companies supposedly negotiate with creditors so customers pay less than what they owe. They often charge such high fees that it costs more than you save through the process. During negotiations, which can last several years, creditors can charge late fees and interest. If a settlement is not reached, you could get sued for payment, though scam artists are eager to help you settle! Still not convinced? Debt settlement can severely damage your credit score. Missed payments during negotiations are reported to credit bureaus. These can stay on your report for up to 7 years and negatively affect your credit history.

If you have a mountain of debt, you need to immediately choose to live like you’re poor. Only buy necessities and stop using any credit cards. If you have medical bills, call the billing office and tell them you want to pay, but need some help. They can reduce the balance or set up an interest-free payment plan. Increase your income and find ways to reduce your expenses. With your family on board and some serious financial planning, you can avoid debt settlement! Going forward, aim to do as the Apostle Paul said in Romans 13:8, “Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.”

Is your credit card debt out of control? Let Christian Credit Counselors help. They can create a debt management plan specifically for you. For more information, visit online at crown.org/ccc.