debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
Debt settlement may be an option as bankruptcy more difficult to attain
01/10/2010
Recently, personal finance expert Jean Chatzky published a book that deals with personal finances.
An excerpt of the book recently appeared on MSNBC.com that dealt specifically with debt settlement, a practice some consumers may consider when facing a hard economic situation.
"If you'd asked me a few years ago about debt settlement companies, I probably would have told you to avoid them," Chatzky said. "But things have changed a bit."
Chatzky noted that because bankruptcy reform laws have made it more difficult for consumers to file, her opinion on debt settlement has changed. Through a company, consumers may be able to reduce the amount they owe to their creditors.
In trying to help a consumer, a debt settlement company will tell them to stop paying their debts. Rather, it will direct the person to give them the money, which they will collect for a few months. The company will then come to creditors with the collected sum and try and negotiate a settlement with it.
However, consumers should keep in mind that debt settlement can affect a person's credit score. FICO recently reported that a person with a credit score of 680 who settles a credit card debt could see their score drop between 45 and 65 points.
More Debt Settlement News
