Getting Out of Debt – The Pros & Cons of Debt Settlement in Texas

If you are swimming in debt, you’re bound to start looking for a way out. Many people see debt settlement –an option that advertises to help you pay off your debt for much less than what you owe– as a way out of their financial woes. However, the truth isn’t quite as simple as all that. Debt settlement isn’t without pitfalls and consequences — and it isn’t for everyone.

What Is Debt Settlement?

Debt settlement is, simply put, hiring a debt settlement company to help negotiate lower payoffs on personal loans, collections, and open accounts like credit cards. Sometimes these companies misleadingly advertise their services as a way to consolidate debt — or “debt consolidation,” — but make no bones about it, this is not a debt consolidation loan. Their main objective is to negotiate a settlement with all of your creditors and lenders.

How Debt Settlement Companies Work

When you hire a debt settlement company you are hiring them to negotiate with your lenders on your behalf. Their job is to negotiate a new, much lower amount for you to pay on the account. In turn, you pay the debt settlement company a monthly payment and they pay your creditors, minus their commission or fee which they deduct from your payment.

When you hire a debt settlement company the first thing they will tell you is to stop communicating with your lenders or collectors. Their objective here is to get your lenders so desperate for some sort of payment that they’ll be more open to accepting a settlement deal. A settlement means that the lender, collection agency, or credit card company agrees to take a significantly lower payoff amount than what you actually owe, wiping your slate clear from the financial obligation.

Pros of Debt Settlement

There’s one obvious pro to debt settlement: a much lower, single monthly payment that you can afford. And, if a settlement is negotiated and accepted, you will pay much much less than you initially owed on the account. Many times this amount is less than 50% of the original debt, which can end up saving you quite a lot of money in the long run.

Cons of Debt Settlement

The cons from going down this road is that your credit score will be negatively impacted until your debts are negotiated and the payments have all been made. This means that you will not be able to obtain new credit cards while going through the process. This also means that if you want to buy a home or refinance your current existing mortgage, you will have to wait until you are finished with the debt settlement program.

In addition, if you want to buy a new or used car, you will have a higher interest rte and monthly payment than if you wait until you have paid all of the settlements and your credit report reflects that your credit card balances are now zero.

You will also be turned down if you apply for a personal loan or another unsecured loan. In other words, if you absolutely need perfect credit and if you will be purchasing big ticket items that a higher interest rate will affect you in a large way, than debt settlement or debt negotiation is not the direction you should go.

However, if you will not be purchasing any large things like a home, boat, or vehicle, than you should seriously consider debt settlement. Once you are finished with the debt settlement program, your credit score will improve dramatically and if you implement some basic credit enhancing strategies, you will start receiving credit card offers in the mail 3-6 months after you complete the program. This time though, you will be much wiser and hopefully more careful as to how you handle credit cards.

Another con is that you have the potential of getting sued on a delinquent account. Lawsuits can easily be avoided by settling the account, but some people are scared that a lawsuit will ruin their credit report or credit score. The truth of the matter is that a settlement on any account means that this particular account is finished and settled and you can never be sued on it.

Finding a company that will assist you in the event of a lawsuit or offers you asset protection is a great way to determine if that company offers a complete type of debt relief service.

Avoid Getting Scammed

It goes without saying that you do NOT want to get scammed by a debt settlement company. Some ways to do your own due diligence when it comes to dealing with debt settlement companies include:

– Ask lots of questions, like how long the company has been in business, what type of training its employees have. You want to go with a company that’s been around and has a staff who understand personal finance.

– Avoid companies that contact you rather than the other way around.

– Read — and understand — the fine print before you sign anything.

– Most companies offer free consultations before you sign anything. Use the opportunity to ask lots of questions and avoid any company that isn’t interested in answering them.

– Settlement companies with a proven track record of getting clients out of debt will have a long line of people willing to testify to that effect. Check the Better Business Bureau to see what people are saying about the company you’re looking into.

– Ask for references from the company so you can speak with former clients of theirs. If they will not or can not offer this, run away as fast as you can. A reputable company can easily locate clients willing to share their success stories with prospective clients.

– Find out if the company has any specialization in the area of debt you have or specializes in the state in which you live. Many companies offer state specific advice because each state has different consumer protection laws and if they can help you implement those laws, it will save you a lot of money and heartache down the road.

The Alternative: Debt Management Programs

Debt settlement isn’t the only option for people who are swimming in debt. If you’ve tried debt management on your own and are still struggling and need help, you may want to consider a Debt Management Program (DMP). DMPs are often run on a non-profit basis through a consumer credit counseling service, and have no motivation other than wanting to see ordinary people get out of debt. The fees are minimal, and much lower than you’ll pay a settlement or consolidation company — and you’ll pay off your debts, typically in less than five years, without all the damage to your credit and credit scores.

Another great thing about legitimate credit counseling services that offer DMPs is that they can also help you evaluate your debt situation, and if you’re not a good candidate for a DMP, they can help you determine if bankruptcy is an option — always a last resort, but there are cases where it’s the only option left.

Before you decide on a credit counseling service, make sure they are legit. You can do this by verifying that they are a member of the National Foundation for Credit Counseling by visiting their website or by calling 1.800.251.CCCS.

Best Ways To Get Out of Debt

Using a HELOC

A HELOC, or a home equity line of credit, is a revolving line of credit secured by equity in your home. That line of credit can be tapped and used for whatever you like; to pay off debt, to buy a car, to pay college tuition, or just to have as an emergency fund. HELOCs are commonly used to pay off credit card debt because the interest is tax deductible and the interest rates are relatively low.

The danger when using a HELOC is what happens if you go into default. Because a HELOC is secured by the equity in your home the bank can foreclose on your house if you don’t pay back the loan. For some people that’s far too much of a gamble just to pay off a little credit card debt.

Using a Balance Transfer

If you’ve got good credit then you’re probably already getting offers for zero percent credit cards. These are tempting, and for good reason. Converting your expensive credit card debt to zero interest credit card debt is a considerable trade off in your favor.

Many of these credit cards allow you to transfer your entire interest accruing balances from other cards AND allow you to make new purchases, all at zero percent interest for some period of time. If you’re disciplined you can use the grace period, normally between 6-12 months, to aggressively attack the balance and get out of the debt.

Using a Personal Loan

A personal loan is an unsecured installment loan. If you’ve got good credit it’s not that hard to qualify for personal loans well above $10,000. If you use the funds from a personal loan to pay off credit card debt then your credit scores should shoot through the roof because you’ll be converting score damaging revolving debt into score benign installment debt.

As far as the cost of the installment loan, it’s possible the interest rate will be considerably lower. If you have good credit you can get an installment loan in the low teens, while your credit card debt might be as expensive as the high 20s. Plus installment loans have a much shorter payoff period compared to credit cards.

What is Debt Negotiation or Debt Settlement?

This is the process of negotiating with creditors or debt collectors to settle debts for less than the full amount owed. Debt settlement is very different than debt management or debt consolidation (the consolidation of all your various debts and accounts to only one large debt account with one monthly payment). There are mom-and-pop debt settlement shops; large, for-profit settlement corporations; and law offices that are set up primarily as settlement companies. There are also individual Attorneys who do settlement work on a case-by-case basis.

In these times of economic upheaval, a number of debt settlement companies are advertising heavily on the Internet and on television. You may have seen some of these ads promising unrealistic and unlikely results in terms of getting rid of all of your debt. While some of these companies are legitimate, a significant number of them are not. Even in the case of a legitimate company, there are pros and cons that the consumer should be aware of. Before forking over your hard-earned cash to any debt settlement company, or granting them automatic access to your bank account, do some research, get a written agreement, and read the agreement. Usually the first person you speak to on the phone is a salesman. The promises they make may be completely accurate, or they may be totally false. Read the agreement. And if there is no written agreement, you risk losing any monies you give them.

Another thing to look for is a company that specializes in the kind of debt you have (for example credit card debt, medical bill debt, student loan debt, store credit card debt, signature loans, cash advance loans, etc.). The best debt settlement companies are those that specialize. They also may specialize in the state in which you live – this is the most ideal case because each state in the country has their own unique consumer protection laws.

You will also want to compare the fees that companies charge. In the past, many debt settlement companies charged a percentage of total debt rather than a percentage of what they were able to save. In some cases, whether any debts were settled or not, this money was considered fully earned. Several debt settlement companies that operated on this type of model have been shut down by state attorney generals in recent years.

In addition, a debt settlement or debt consolidation company may work with you to get you approved for a home mortgage refinance and use the extra monies to pay off your debt in full, or at a reduced rate, with a healthy slice going to them for their services. Before turning your unsecured credit card debt into secured mortgage debt you should consult with an experienced debt relief Attorney, preferably one who is also well educated and practiced in bankruptcy. It may be a smart move for you to refinance, or then again, depending on your situation, it may have a disastrous outcome. The debt consolidator is not the one who should advise you on this issue.

How It Works

The majority of settlement companies operate by collecting funds from you on a monthly basis. These funds go into an account and at the point that there exists sufficient money to settle an account, one or more of your creditors are contacted and negotiations begin. One important fact that you need to keep in mind is that in most cases the fee that the settlement company pays itself comes out of your monthly contribution before any monies get deposited into your settlement account. In many cases, if you change your mind about settlement in midstream, it may be difficult to get unused monies returned.

In terms of negotiation, some companies really work the account and negotiate hard to get a good settlement or lower your interest rate and payment. Others accept whatever the creditor is willing to offer and do very little, if any, work to earn the fees that you have paid them.

Many creditors have put policies in place that forbid them from working directly with debt settlement companies. Make sure you find out what happens to your fees if a creditor won’t settle with your representative.

There are other potential problems, the foremost being that depending on the size of your debt, how many creditors you have, and the amount you are able to contribute to settlement on a monthly basis, it may take years to accrue enough money in your settlement account to settle all of your debts. During this time period you may be sued, and potentially garnished. Find out if your settlement company is set up to legally represent you in the case of a lawsuit. If your company is not a law firm with attorneys licensed in your state, they can’t represent or advise you, despite what they may claim. Additionally, if your settlement company is a settlement law firm, they may be able to offer you generic advice, but may still be unwilling, or unable, to represent you personally in the case of a suit.

How Much Money Will You Save?

That depends on a number of factors: the age of the debt, the creditor, if it has been sold to a debt collector prior to settlement, if a suit has been filed, if a judgment has been obtained, and most importantly–who is doing the settlement on your behalf. There is no universal rule of thumb, but it stands to reason if a settlement company can “earn” a lot of your money with very little work, then you can expect that there will not be a great deal effort that goes into settling your account. “No effort” equals not much money saved. Then again, some companies work hard and can save you up to 70% of the total amount owed. Ask for settlement statistics.

You can also ask the company if they will guarantee their service. No company can guarantee the exact individual results, but they can guarantee at least a minimum result for their clients. One such company is Integrity Debt Solutions who will guarantee at least a 40% reduction of your debts. In other words, if you pay 60.1% out of pocket to resolve your debts, this company will refund any fees that they have charged and you will get their service for free. Make sure to see if the guarantee is in writing. Integrity Debt Solutions does have theirs in writing and they have been in business since 2004.

Are You a Good Candidate for Debt Settlement?

Maybe. Possibly debt settlement is an excellent option for you; possibly bankruptcy is more suited to your needs. There is really only one way to know–consult with an Attorney who is experienced in both arenas. Debt settlement, when appropriate and done well, can save you a significant amount of money. We have saved our clients tens of thousands to hundreds of thousands of dollars. Debt settlement, when not appropriate, or poorly done, can cost you an arm and a leg, and accomplish nothing positive. This is really an area where it pays to know before you go.

Can You Settle Debts on Your Own?

Yes. But there are pitfalls. The first necessary action is properly and carefully dealing with the creditor or debt collector. This is not always fun. The second is ensuring that the entity you are negotiating with really owns your debt or the right to collect and settle it. Lastly, have you ensured that the settlement itself is actually valid? We have clients who have settled their own debts only to contact us because a collector is trying to collect on the same debt already “settled”.

Just as with settlement companies, the key determining factor in a successful settlement is–who is doing the settlement? If you are a good negotiator and you can handle the stress of personal contact with collectors, are well organized, and pay attention to details, you may be able to settle your debts and do a reasonably good job of it. If all these points do not apply to you, then you can probably save a lot more money with a reputable and experienced attorney handling negotiations and settlement for you; an attorney who knows the relevant laws and cannot be intimidated into a deal that could have been much better.

How to get out of credit card debt

Just as it takes time and determination to climb a mountain, it takes time and determination to conquer a mountain of debt.

But if you’re equipped with the right knowledge and tools, the journey to conquering that mountain can be relatively smooth. Plus, you don’t have to tackle that mountain of debt alone — credit counselors are available to help.

Beverly Harzog, credit card expert and author of “The Debt Escape Plan,” says that in paying off more than $20,000 of her own credit card debt, she learned that it takes persistence, self-discipline and “a darned good budget” to get rid of that financial burden.

Of course, keep in mind that no two attempts to conquer debt are the same. A debt reduction plan that works for one person may not work for another. And unless you stick to your plan, you’ll likely have a tough time chipping away at your debt.

“There is more than one path to success, so it’s important to know that options are always available when a plan doesn’t work as expected,” says Bruce McClary, vice president of public relations and communications at the National Foundation for Credit Counseling, a nonprofit financial counseling organization.

Common Question

Can you negotiate with credit card companies?

In certain cases, yes. Some companies are open to negotiating lower APRs, better payment options and even debt settlements, though others may have different policies.

What follows is advice on how to get out of credit card debt. Do keep in mind that this advice won’t guarantee success, but it can help point you in the right direction.

How to get out of credit card debt

  1. Evaluate your finances
    2. Prioritize your spending
    3. Create a budget
    4. Free up money
    5. Set a strategy
    6. Seek help (if you need it)
    7. Work on your financial habits
  2. Evaluate your finances

Regina Blackwell, a certified budget counselor at Transformance, a nonprofit credit counseling service, says your first step should be to assess your financial situation.

Create a list of everything you owe, including credit card debt and all other monthly bills, she suggests. This review of your overall debt should include the balance and the annual percentage rate (APR) — the price you’re charged to borrow money — for each credit card.

Looking at each card’s APR will help you decide how to approach reducing your debt. In some cases, you might want to tackle higher-interest debt first to save money on interest charges; in other cases, you might want to give yourself a psychological edge by paying off lower-balance cards first.

What’s the average APR on a credit card?

Next, compare your debt and expenses with your income. In examining your debt and expenses, you should consider items such as rent or mortgage debt, credit card balances, loan debt and grocery bills.

As for your income, take into account your salary, the interest earned on your savings and anything else that generates money.

  1. Prioritize your spending

When mapping out how to get rid of credit card debt, be sure to cover the basics first, says Sean Fox, co-president and CRO of Freedom Financial Network, a financial services company that specializes in debt settlement. Those basics include food, housing and clothing.

Then, Fox says, be sure to pay at least the minimum amount on secured debts. This type of debt is secured by an asset (sometimes referred to as “collateral”) such as a car or home. If you fail to make timely payments on secured debt, you could lose the asset that’s backing the loan, he warns.

Next, tackle your credit card debt. Credit Karma’s Debt Repayment Calculator is a great way to get started on this task and stay on track. Just enter in the balance you owe and the interest rate, then enter your expected monthly payment or desired payoff timeframe to get an idea of how long it will take to tackle that debt.

Also, focus on student loan debt, Fox says. Why? Because the federal government, which backs most student loan debt, has the means to punish you financially if you have defaulted on the repayment of a student loan. For instance, the government can garnish your wages, your tax refunds and your Social Security benefits. If you have a private student loan, the lender can’t go after your wages or Social Security benefits, but they can pursue legal action in court to collect student loan debt.

Consider not using your credit cards while you’re working on cutting your debt. Paying for things with cash or a debit card can ensure that you don’t rack up debt as you’re trying to pay it off, which can be a frustrating and deflating experience.

Most crucially, make sure you’re making the necessary minimum payments at least on all of your outstanding debts.

Balance transfer cards: One way to help pay off debt

Rather than pay interest on your credit card debt, you may be able to transfer high-interest debt to a single credit card with a balance transfer.

Learn how to do a balance transfer in 6 steps

A number of balance transfer cards allow you to pay 0 percent interest on your balance for a set amount of time, so you can pay more money toward your principal and reduce how long it will take to pay off your debt.

A card like the Citi® Diamond Preferred® Card  offers 0% intro APR for a full 21 months on balance transfers with a $0 annual fee. (After that, the variable APR will be 14.74% – 24.74% based upon your creditworthiness.) There is a balance transfer fee of 5%; minimum: $5. All transfers must be completed in the first four months of account opening.

If you need a lot of time to pay off debt without being charged interest, this may be a good option to consider.

  1. Create a budget

Once you’ve prioritized your debts, it’s time to establish a budget. A budget will help you track your spending and get a better handle on how to shrink your credit card debt.

“Stick to your new budget like glue,” advises Blackwell. Online tools such as Mint and YNAB (You Need a Budget) can be useful in setting a budget and making sure you don’t stray too far from it each month.

Fox says creating a budget will guide your decision about what strategy to use for reducing your credit card debt. “Be honest with yourself about your obligations,” Blackwell adds. (Later, we’ll explain in detail how to pick the right strategy.)

  1. Free up money

As you’re adhering to your budget, you might want to investigate ways you can trim expenses and generate more income.

Going without cable TV, kicking your Starbucks habit or canceling your gym membership are just a few ways to trim down your expenses. It’s up to you to decide which luxuries you’re willing to give up and which you simply can’t live without.

If you’re itching for some extra income, give some thought to getting a part-time gig (or “side hustle”) or making money from a hobby, such as designing jewelry. Or perhaps you can volunteer for paid overtime at your full-time job.

“Just make sure you can handle the extra workload, both physically and mentally,” says Blackwell. “Never put your primary source of income at risk.”

And — though it may be tempting — remember to steer that extra income toward your credit card debt, not toward a fancy gadget or trip to Hawaii.

  1. Set a strategy

Strategies for debt reduction come in three varieties: the avalanche method, the snowball method and the blizzard method.

The avalanche method

As explained by Fox, the avalanche method involves paying off the balances with the highest interest rates first. The goal is to erase your debt as quickly and efficiently as possible.

Here’s how it works: Make minimum payments on each of your balances except the one with the highest APR. For the card account with the highest APR, pay the minimum plus any extra you can afford.

“Repeat this process every month until that debt has been paid off,” Fox says. “Then, keep paying the same monthly total, but take every dollar you were using to pay off the highest-interest debt and put that toward paying off the debt with the second-highest interest rate.”

By aggressively paying down your highest interest balances first, you may save hundreds or even thousands on interest charges in the long run. If saving money is your top priority, stick to this strategy until all your credit card debt is gone.

The snowball method

With the snowball method, you pay off the card with the smallest balance first and work up from there, Fox explains. As with the avalanche method, you always make the minimum payments on all your accounts, but then you put any remaining money toward the card with the smallest balance.

After the balance on that card is wiped out, put any extra cash toward the card that now has the smallest balance. This method can help you build the confidence and positive repayment habits you need to eventually conquer all your debt.

The blizzard method

The third strategy is known as the blizzard method. Harzog says this combines paying off the smallest balance first (snowball) and then paying off the highest-interest balance (avalanche).

“The avalanche saves the most money, but some folks prefer a quick win with the snowball method,” Harzog explains. “The blizzard combines both — you get the emotional boost and then you can save money by using the avalanche.”

  1. Seek help (if you need it)

Do you still feel overwhelmed? Then it might be time to seek a credit counseling agency, whose experts can help put you on the right track. A credit counselor will work with you to help improve your financial situation, offering tools and resources to help you gain control over your money.

The Federal Trade Commission suggests finding a credit counseling agency that offers in-person services. Ask friends and relatives for suggestions on which agencies are reputable; your bank is another potential resource.

Common Question

Where can I find a credit counselor?

To get started, check out the nonprofit National Foundation for Credit Counseling (NFCC). Founded in 1951, the NFCC is the largest nonprofit focused on enhancing people’s financial well-being and has network offices in all 50 states. You can contact a NFCC-accredited counselor by calling 800-388-2227.

Once you’ve done your preliminary homework, double-check whether the agencies you’re considering are trustworthy by contacting the attorney general’s office in your state or by reaching out to your local consumer protection agency.

  1. Work on your financial habits

If you don’t alter the behavior that got you into credit card debt in the first place, you might slip back into debt again in the future.

Fox stresses the importance of differentiating between “wants” and “needs.” Do you need food and housing? Definitely. Do you need to pay your bills and set up an emergency fund? Most likely. Fox says these “needs” should take precedence over “wants.”

He also stresses the need to stick to the budget you’ve created. If you’re not keeping close track of your income and spending, you may wind up in debt all over again.

“Staying out of debt isn’t a big mystery,” Blackwell adds. “Account for your money. Live within your means. Don’t spend what you don’t have. After becoming debt-free, apply the lessons you’ve learned and work toward the establishment of healthy financial habits.”

Bottom line

Getting out of credit card debt usually doesn’t happen immediately. If it took you a while to rack up the debt, it may take you a while to eliminate it.

“The most important thing to keep in mind is consistency in making payments on time every month,” Blackwell says.

“Hopefully, once your credit cards are fully paid off, you’ll swear never to go back to the behaviors that led to being in debt.”


An Expert Guide To Credit Card Debt Settlement

Welcome to IDS’s Debt Settlement and Negotiations Guide. This guide makes up the largest portion of the debt relief and credit guides published on this site. That’s because debt settlement does not fit into a tidy package like consolidating credit cardsconsumer credit counseling, or bankruptcy. I thought it important to have an introduction to debt negotiation due to the amount, and variations of content, you will find here.

The concept of settling unpaid debts, like credit cards, is not overly complicated, though it is certainly something that cannot fit on a single web page. And once you introduce the different stages of debt collection; and how to negotiate with debt collectors vs settling with your bank; or outline what you can do when settling collections in the court; the content for the debt settlement guide grew larger, and continues to expand.

Credit cards are the most common type of debt that can be negotiated and settled for less than the total balance owed. Much of the debt settlement guide focuses on this from of unsecured debt for that reason. But there are many other types of debts that the guides can be applied to. You will find guides related to settling business debtsmedical billspersonal loans, and more, throughout the site.

Get the Most Out of This Debt Settlement Guide

We highly recommend you read through the debt settlement program in order. This will allow you to gain the maximum level of understanding of what credit card debt settlement is, how it will work in your specific situation, when settling debt works best, or even why you might want to avoid debt settlement all together. This recommendation includes any of you reading who may have committed to settling credit card debts that you stopped paying some time ago.

Following the recommended outline for settling credit cards is suggested because:

  • Debt settlement, as it is explained by the media, and what is probably more than 10,000 websites, often does not scratch the surface of the topic (it cannot be explained sufficiently in a single article).
  • A debt settlement company selling their program to anyone who will listen will often fail at giving you a detailed outline of what they are trying to sign you up for. Opting instead to put profit or sales commission goals in front of your need to be adequately informed.
  • You should understand the fundamentals of settling debt so you can weigh the benefits and the drawbacks with clarity – before negotiating and settling debt yourself, or hiring a professional.

Following the way we have laid out this section, no matter what stage of collection you might be in (and especially if you are still current with payments to creditors), puts you in the best position to succeed with debt settlement.

Once you complete your review of our debt settlement guide, you will know more than the majority of sales people who are the front line for selling debt negotiation to the public.

Before You Jump Into Debt Negotiation

IDS advocates settling credit card debt as a personal financial solution. We have provided debt settlement education and debt negotiation services since 2004. We are good at it. We have made our customers, members, and readers good at it. We are also not your Aunt Mildred’s debt settlement company (no offense Mildred).

We have decided to create and publish the online debt relief program for many reasons. We may fully lay out more of the reasoning in a later update to this section, but for now, here is some of the considerations we have in doing this:

Debt settlement works for the right person and the right situation. Debt settlement does not work for the wrong person, nor does it work well for the wrong situation.

We decided to create and publish this guide so that you can tell the difference between whether settling credit card debts is right for you, and if it is, when, why, and how much of your money to put into this method for resolving debt. We hold nothing back. We offer our support freely to the public through dedicated feedback in the comments on virtually every page of the site.

If we can save you from making uninformed debt and credit decisions that can hurt, rather than help you, we want to. If we can save you money when you settle credit card debts, we will.

What is Debt Settlement?

Debt settlement is what happens when you negotiate a payoff for less than the total balance you owe on a debt. The lower payoff amount will be something the creditor or debt collector agrees to document and accept from you as payment in full. The lower negotiated amount should be something you can afford to pay in one lump sum, or over time if it is a term settlement agreement.

Negotiating and paying a lower amount to settle debts you are already late with is very common. There are elements to settling some types of debts that you can set your clock to because the process can be highly predictable. And there is both safety and comfort in this predictability.

Settling credit card bills, and other debts you cannot afford to keep up with paying, is a pretty straight forward concept. And so is determining whether settling with creditors and collectors is right for you. Let’s start by narrowing down the basic principle of the 3 most common debt solutions to one sentence each.

  • Consumer credit counselingand payment consolidation is based on the principle of “What can be paid – should be paid”.
  • Debt settlement is based on the principle of “Paying something – is better than nothing”.
  • Bankruptcyis based on the principle of “What cannot be paid – won’t be paid”.

If you are looking at debt settlement as a way to deal with problem bills, it is likely because you are in the middle. You cannot fully afford the debts you have now, but can afford something, and would prefer to manage the situation outside of bankruptcy.

How Debt Negotiation Works

Each of your credit card lenders will have a policy for how they handle collecting on accounts that go delinquent. Some of these policies include:

  • Getting you back on track by offering reduced payment hardship plans that may be temporarily extended to you for 3 to 12 months, or applied over the life of the balance in a 5 year payback schedule.
  • Debt collection efforts internal of the banks own recovery department.
  • Charge off your debt as noncollectable and place your account with a collection agency who will bug you over the phone and through the mail to get you to pay.
  • Placing your account with a debt collection attorney.
  • The legal rights to collect from you could be sold to a debt buyer.

Debt settlement is a method to resolve unpaid credit card bills for less in every one of the scenarios above. That’s as complicated as the debt settlement process will ever be.

Is Settling Debt Right For You?

Ahhh… the details. Yes, getting the best deals, and the most from settling debt, is in the details. And the details when negotiating and settling can change from one creditor to the next; from one collection stage to the next; and most certainly from one personal set of financial concerns to the next.

The majority of what happens in the process of settling credit card debts is controlled by the policies, procedures and protocols that are set up by your creditor or outside third party debt collectors. Knowing the policies and procedures for each of your accounts you will settle, in advance of the settling, is a huge benefit. You simply plan ahead financially for the settlement opportunities that will be presented, and make the right moves along the way.

You can use this site to help you settle your debts on your own. We offer upfront education about the debt settlement process, supplemented by on the ground and “right now” details provided free in the comments section of this website. And you can get one on one dedicated professional feedback by requesting an expert debt settlement consult over the phone.

We know that many people are freaked out by the concept of negotiating and settling credit card debts on their own.

This Debt Settlement Guide includes:
An Expert Guide to Credit Card Debt Settlement (you are here)
How and Why Banks Settle Credit Card Debt with You
Types of Accounts to Include in Your Debt Settlement Plan
Why Settling Credit Card Debt is Like a Race
How to Settle Credit Card Debt Quickly
How to Talk to a Debt Collector
How to Negotiate Credit Card Debt Successfully Yourself
7 Largest Credit Card Banks and How They Settle Debt
Get Debt Settlement Letters and Agreements from Collectors
Paying Debt Collectors After You Negotiated a Settlement


Getting out of debt in Dallas, Texas

The Texas economy generates $1.65-trillion — second only to California in terms of revenue-producing economies in the United States. It showed the second-fastest rate of job gains in 2015, while 121 of the 1,000 largest public and private companies are in the state, including giants such as AT&T, ExxonMobil and Dell.

The oil industry has taken a hit — once trading at more than $100 a barrel in 2014, but down to $46 in late-2017 — but the state’s economy has become much more diversified with expansion into healthcare and technology.

Residents owe far less on mortgages and student loans than the national average. But there are lingering problems with credit card debt and credit scores that surpass the national average.

Where Texas Credit Scores Ranks

Texans have among the lowest credit scores in the country, a result of falling behind on bills and making late payments. The state also has one of the highest rates of identity theft in the country, although this rate has decreased in recent years.

Consumer debt problems in Texas could partially be the rest of a lack of statewide consumer protection laws. While some states use federal laws as building blocks for more stringent state laws, Texas does little to expand upon national protections.

Credit Card Debt

Texans have a combination of different types of debts, but credit card debt is among the most detrimental. It is a problem that could be addressed by a non-profit credit counseling agency, where more could be learned about budgeting and money management.

According to Experian study from 2015, Texans had an average credit card debt of $5,960, ranking 38th nationally, and well above the national average of $5,700. It was the same figure from a study three years earlier, but the state was ranked 33rd nationally then, suggesting that it’s more difficult to pay down the debt in Texas than other regions with higher median incomes.

There are discrepancies in the statistics from various credit-card debt studies, but they agree that Texas is lagging behind the national average.

According to a 2015 study by, three Texas metropolitan areas are among the five worst areas for credit-card debt.

San Antonio was No. 1, possibly because of the area’s heavy presence of members of the military, who are more likely to carry higher credit card debt than other portions of the population. According to, San Antonio had an average credit-card debt of $4,879 and a median income of $27,491. Assuming a monthly payoff of 15%, it would take San Antonio resident 16 months to erase the total debt.

Dallas-Fort Worth was ranked No. 2 in the study and Houston was No. 5.

Consumer Debt

In addition to credit-card debt, Texans and other Americans struggle with student loans, mortgages and other debts.

In 2015, Texans had an average student loan debt of $26,250, which was well below the national average of $28,950. Still, given the fact that the student loan debt increased by 61% in the state from 2004-12 — while inflation increased by 22% — it’s a sizable issue.

Texans also have mortgages averaging $22,500, as well as auto loans and personal loans. The average Texan carried $38,000 in debts in 2015, well off the national average of $46,170.

Non-profit credit counseling agencies can provide education and relief, while teaching consumers about debt consolidation or enrolling them in a debt-management program.

Meanwhile, Texas bankruptcy rates continue to decline. On a per-capita basis, Texas had the nation’s 46th-highest total of 1.24 bankruptcies per 1,000 residents in 2014, a drop of 13% from the previous year. From 2005 to 2011, Texas bankruptcies were cut in half.

Credit Scores

Despite having lower debt amounts overall, Texans have worse credit histories than most Americans. Experts state that consistently late loan payments are responsible for the state’s credit scores.

Texans have an average FICO credit score of 646.9, ranked 45th nationally and far lower than the national average of 695. The FICO model, which is used by all three nationwide credit bureaus, assigns scores on a scale of 300 (poor) to 850 (excellent).

Texas State Laws on Consumer Debt:

The Texas legislature has enacted a handful of laws that work in conjunction with federal laws to increase financial protection for its citizens. These laws specifically limit collection actions and credit card penalties.

Texas Debt Collection Act

The Texas Debt Collection Act is the state’s version of the federal Fair Debt Collection Practices Act (FDCPA). Both aim to protect consumers against unfair collection practices. The Texas act covers the same areas as the FDCPA; they both prohibit debt collectors from using fraudulent, abusive or misleading tactics during attempts to collect debts.

However, the federal law applies only to debt collectors working for designated debt collection agencies and professional lawyers hired for debt collection purposes. The Texas law reaches a broader scope. It applies to anyone attempting to collect a consumer debt, regardless of their affiliations.

Statute of Limitations

Texas’ four-year statute of limitations on debts works alongside the Texas Debt Collection Act. The limited time period means that debt collectors cannot sue individuals in an attempt to collect debts that are more than four years past due.

Credit Card Laws

Texas law limits credit card interest rates to 18 percent, a rate that is periodically re-evaluated. However, this only applies if the card issuer is chartered in Texas, which is rare.

Other types of loans and debts can exceed an 18-percent rate. For example, commercial loans of more than $250,000 can have interest rates up to 28 percent.

Texas law also prohibits businesses from charging customers extra for using credit cards. However, businesses are allowed to give discounts to consumers who pay with cash.

There is a company that specializes in helping consumers that live in Texas – Integrity Debt Solutions has been in business since 2004, they have an A+ rating with the Better Business Bureau (BBB), and they offer a money back guarantee if they cannot reduce your debt by at least 40%. Their reviews are outstanding.

Identity Theft in Texas

In 2015, Texas had the nation’s 12th-highest total of identity theft, averaging 95.9 cases per 1000,000 residents. It is down from 10 years earlier, where there were 116 thefts per 100,000 residents.

One of the largest identity thefts in history occurred in late 2004. ChoicePoint, Inc., a Georgia-based company that kept consumer financial data records, suffered a security breach that compromised the records of more than 163,000 individuals nationwide. Texans accounted for more than 11,000 of the affected individuals, more than any other state besides California. The breach led to at least 800 identity theft cases nationwide.

Debt Relief Companies

4 ways to tell that the debt relief program you’re exploring isn’t legit.

Facing challenges with debt is stressful enough. From past due notices to collection calls, being in debt brings constant stress. The last thing you need is to add to your stressed by getting scammed. Unfortunately, there are companies out there bent on taking advantage of consumers who are already in a bad situation. They know you’re desperate and willing to do anything to get out of debt, so they use that sense of urgency against you to get money without actually doing anything to fix your situation.

So while debt definitely sucks, getting scammed by a disreputable debt relief company definitely makes it suck worse. The information below is designed to help you avoid getting scammed by a disreputable “service provider.” We identify the four main ways you can spot a scam, so you can find a real debt relief service provider so you can start getting real relief as soon as possible.

Sign of a scam No. 1: To-good-to-be-true claims

“We guarantee we can settle your debt for just pennies on the dollar.”

Ever heard that claim on a commercial on either late night or daytime local television? How can they guarantee something about your debt if they’ve never even talked to you?

The unfortunate truth is that claims that seem to be too good to be true usually are just that. Words like “guarantee” are usually a dead giveaway of a scam unless there is an actual guarantee that they offer – like a 60-day money-back guarantee and it is in writing. Ask any debt relief or debt settlement company if there offer is in writing and see what they say. So if there’s not a formal guarantee statement that’s provided with a bunch of disclaimers and fine print, you’re probably dealing with a scam.

Sign of a scam No. 2: Unsubstantiated claims

This carries on from the first sign of a scam. Unsubstantiated claims are when a debt relief company states a specific number that they can’t back up. For example:

“This program will boost your credit score by 100 points or more over the next year.”

This claim is different from one that’s too good to be true, and it’s harder to spot because it may have a grain of truth to it. For instance, if you’re a consumer with a rock-bottom bad credit score of less than 600 and you take certain actions over the course of a year, there’s a good chance you could build your way to a score that’s 100 points better within a year – with or without their program. However, that claim doesn’t apply to everyone.

Ever see the fine print on commercials that reads something like, “Results not typical”? Well, that’s where this sign of a scam comes in. Any numeric claim that a company makes should be backed up by data. And any representative that works for the company should be able to give you the information that backs up that claim.

Sign of a scam No. 3: Large upfront fees

There are several federal laws in place that prohibit debt relief companies from charging large fees upfront before debt settlement services are rendered. When companies charge fees upfront, they basically make you pay for the initial consultation and all of the paperwork they do on your case. You pay a bunch of money to them to get started only to find out a few weeks later that, “Sorry, it turns out we can’t help you.” They have your money and you’re no closer to finding a solution than you were when you started.

A debt relief company should only be paid once they actually start helping you. So credit counseling agencies should only get paid after your creditors have agreed to allow you to enroll their debt in your debt management program. A debt settlement company should only get paid only after they begin helping you in a tangible way and/or after they’ve settled at least one debt on your behalf. If you’re paying before you see any actual relief or you’re charged large upfront fees without a money-back guarantee or written refund policy, be careful because it’s probably a scam.

Sign of a scam No. 4: No BBB rating

The Better Business Bureau is your best resource when choosing a reputable service provider in almost any area of your life, but especially when it comes to financial services. If the company doesn’t have a BBB rating because they never applied for accreditation, that’s a bad sign.

Of course, if the company is rated by the BBB and it’s rated badly, that’s not good either. You generally only want to work with A and A+ companies to ensure you’re working with legitimate services that work the way they claim they work. But even a B-rated company is better than a company with no rating at all. Avoid no-rating companies altogether and check out the company’s client review with the Better Business Bureau. If a debt relief company has been in business for any length of time, they should have reviews from actual clients.

Just make sure to read any debt relief service provider’s page carefully. Other big warning signs are class action lawsuits by State or the federal Attorney General’s office. You should also be wary if the company has a number of unresolved complaints.

It’s important to note that the one financial relief service where this tip doesn’t work is with credit repair. The Better Business Bureau does not rate any credit repair service because the industry as a whole is so problematic when it comes to fraud and scams. Since disreputable services are so few and far between, the BBB won’t even rate a credit repair company. So if you’re repairing your credit, you may want to figure it out on your own or simply work with a local state-licensed attorney.

The Truth About Bankruptcy

You did everything you could to avoid it. You cut back on spending. You sold stuff to make payments. You’ve been eating rice and beans for months now. But even with all the work, you’ve come to one painful conclusion—you may need to file bankruptcy.

Bankruptcy is confusing, not to mention emotionally devastating. It’s a serious decision, and we don’t want you to have surprises along the way. Here are some things you need to know before you take the first step.

What is bankruptcy?

Bankruptcy is a court proceeding where you tell a judge you can’t pay your debts. The judge and court trustee examine your assets and liabilities to decide whether to discharge those debts. If the court finds that you really have no means to pay back your debt, you declare bankruptcy.

Bankruptcy can stop foreclosure on your home, repossession of property, or garnishment of your wages or bank accounts. Bankruptcy cancels many—but not all—of your debts.

Bankruptcy doesn’t clear:

  • Student loans
  • Government debts like taxes, fines or penalties
  • Child support and alimony
  • Expensive items purchased right before filing bankruptcy like cars, boats, or jewelry

When you file for bankruptcy, creditors have to stop any effort to collect money from you, at least temporarily. Most creditors can’t write, call or sue you after you’ve filed. However, even if you declare bankruptcy, the courts can require you to pay back certain debts. Each bankruptcy case is unique, and only a court can decide the details of your own bankruptcy.

What are the main types of bankruptcy?

There are two main types of bankruptcy for consumers. You’ve probably heard of them: Chapter 13 and Chapter 7.

Chapter 13

Chapter 13 means the court approves a plan for you to repay some or all of your debts over three to five years. You get to keep your assets (stuff you own) and you’re given time to bring your mortgage up to date. You agree to a monthly payment plan and must follow a strict budget monitored by the court. This kind of bankruptcy stays on your credit report for seven years.

Chapter 7

Chapter 7 means the court sells all your assets—with some exemptions—so you can pay back as much debt as possible. The remaining unpaid debt is erased. You could lose your home (or the equity you’ve put into it) and your car in the process, depending on what the court decides. You can only file Chapter 7 bankruptcy if the court decides your income is too low to pay back your debt. This type of bankruptcy stays on your credit report for 10 years.

You’ve probably heard of other types of bankruptcy, like Chapter 11. It’s typically reserved for businesses. You may also hear of Chapter 12 bankruptcy, which is for farmers and fishermen.

For specific information about bankruptcy laws in your area, visit the United States Courts website. There you’ll find information on the process and where to find help in your area. There is a bankruptcy court for each judicial district in the United States—90 districts in all.

What are the consequences of filing bankruptcy?

Let’s not sugarcoat it: Bankruptcy takes a huge emotional toll on a person. It ranks up there with divorce, loss of a loved one and business failure. Beyond the emotional impact, here are other effects of declaring bankruptcy:

Your bankruptcy becomes public domain.
This means your name and other personal information will appear in court records for the public to access. That’s right . . . potential employers, banks, clients and businesses can access the details of your bankruptcy.

Filing bankruptcy is expensive.
Filing fees for Chapter 13 bankruptcy will cost around $310 plus attorney fees, which can be anywhere from $1,500 to $6,000. For a Chapter 7 bankruptcy, you’ll shell out $335 for filing fees and $835 to $3,835 for an attorney.(1)

Buying a home could be more complicated.
Unless you pay cash for a home, it could take one to four years before you qualify for a mortgage loan.(2)

What should I do before I file for bankruptcy?

Filing for bankruptcy is a big deal, so you don’t want to go into the process blind. Here are some things you need to do before you take any action:

  1. Organize your paperwork.

Make a list of all debts, from your mortgage to student loans to child support. For each of those debts, find paperwork to verify the amounts. If you talk to anyone (lawyer or financial coach), you’ll need this information.

  1. Look at options.

Before you file, try your best to pay off your debt. Get on a bare-bones budget. Talk with creditors about lowering interest rates or getting better terms. Move to a smaller place. Get an extra job to pay the bills. You get the idea.

Another option you can look into is debt settlement. There are many excellent and reputable debt settlement companies that will negotiate settlements for dimes or quarters on the dollar for you and help you get your credit card debt, unsecured loan debt, medical bills, and many other debts resolved so you can avoid bankruptcy.

Our strong advice is this: do whatever you can to avoid bankruptcy because this will stay on your record for 10 years and any & all financing you do in the future will have extremely high interest rates that cause you to pay thousands & thousands of dollars in extra money in interest payments.

Look for a debt settlement company that specializes in your state. Look for companies that are fully accredited with the Better Business Bureau and have great reviews. Look for companies that will allow you to speak with clients that they’ve served so you can see how they treat their customers and if they follow through on their promises.

  1. Try financial coaching.

A financial coach can give you a different, unbiased perspective on your financial situation. They can talk with you about alternatives to bankruptcy and create a customized plan to get you out of the red. And they can give you encouragement and that extra kick in the right direction!

  1. Get professional help.

If you’ve done everything you can and still can’t get your head above water, bankruptcy may be your only option. Filing is complicated and involves lots of paperwork and the potential for mistakes. Working with a pro is your best option for walking through the process, but this should be a last resort after you’ve tried other options.

Weighing the Benefits of Debt Settlement

For a fee, consumers can get help negotiating lower debts.

When consumers with mounting debts get desperate, they often turn to what can seem like their last, best hope: debt settlement companies.

Those companies are taking on an increasing number of clients as more consumers find themselves unable to pay their bills. Bankruptcy filings are up 30 percent over last year, and many consumers have so much debt relative to their income that debt settlement companies decline to take them on as clients. (Credit counselors, who focus on financial literacy and rehabilitation rather than negotiating lower payments, often work on those more severe cases.)

For a fee, struggling consumers can hire a company like Integrity Debt Solutions (IDS), which currently works with over 1,000 clients. Gary Wayne, president of IDS, says his clients have between $12,000 to over $300,000 of unsecured debt, which includes credit cards, overdue rent, medical bills, unsecured loans, and utility bills. Mr. Wayne was asked to explain the ins and outs of his business. Excerpts:

How does debt settlement work?
People call us to ask about signing up for the program. We help them start the process of saving money and then contact their creditors [on their behalf]. We usually get creditors to accept a 25 to 70 percent settlement rate. This month, we’re getting a 37 percent settlement rate. The companies are willing to accept that because otherwise, they could get nothing. Generally, at that stage, people are going to go bankrupt, and it’s hard for banks to know what’s going on. Hardship clients [people who are experiencing major life challenges that make it impossible for them to pay their bills] don’t have much money, and sometimes the bank never gets paid.

Do you also help teach clients how to save money?
We don’t give legal advice, but we do tell people how they can save money. We go through their debts and pick which ones they should do first.

Does it hurt a person’s credit score to do that?
It can hurt it temporarily, but in the long run, it’s better to get out of debt. Around 25 percent of clients who get out of debt do it in a year or less. The other 75 percent do it in a two- to three-year time frame. It takes time to build up funds. We stay in touch with our clients about every other month, whether we need to or not, to check in. We often urge people to keep one credit card [so they can build their credit score back up by making regular payments]. It usually takes six to 12 months before they can start rebuilding their score.

Why do you specialize in Texas?
The founders of the company used to work for a nationwide debt settlement company and learned about many of the beneficial consumer protection laws that each state has. It turns out that Texas has some of the most beneficial laws, but consumers are simply not aware of these laws & benefits. We decided to start our own company and educate our clients and implement these protective measures so clients could save more money than other debt settlement programs and have more peace of mind & security.

Why do you offer a money back guarantee and how does it work?
We knew when we first started in 2004, that there were many scam artists & companies out there. We wanted to differentiate ourselves from our competitors and minimize their risk so from the very beginning we had our attorneys include money back language in all of our clients enrollment forms and contracts. The guarantee states that if we cannot reduce a client’s debt by at least 40% (where they pay 60% or less), then they will get our program for free. Of course, we never know for certain exactly where we can & will settle a particular debt for a client, but if we cannot reduce their total debt on all of their accounts combined by at least 40%, then we feel we don’t deserve to get paid. The good news is that we have not had to refund anyone yet – a track record of which we are very proud and working diligently to maintain.

How much does your debt settlement service cost?
We charge 15 percent of unsecured balance you bring in, which can be paid over a period of months and can be customized to what the client can afford. There is no application fee. So for someone with a $10,000 debt, they will pay us $1,500 which can be paid in $100 increments over 15 months.

Do you ever turn customers away?
When we first talk, we go over their debts and income. If they don’t have enough income, we say, “You can’t afford to be in a program like ours. Maybe consumer credit counseling would be better.”

Are There Benefits of Debt Settlement?

When it comes to debt settlement, the benefits really do make it a good option for those consumers struggling with a large amount of debt.

Debt settlement is a debt repayment strategy where you negotiate with your creditors to accept a partial payment as full satisfaction for the debt. If the creditor agrees, you pay just a percentage of your outstanding balance and the rest of the debt is canceled for good.

Outside the debt settlement industry, debt settlement is rarely (if ever) recommended as a viable solution to dealing with your debts. Much of this has to do with the number of debt settlement scams and the miseducation of consumers to the effects of debt settlement. For certain consumers, there may be some benefits to debt settlement.

You Can Avoid Bankruptcy:

The biggest reason that people choose debt settlement is to avoid bankruptcy. Bankruptcy is a debt solution that will follow you for the rest of your life. The bankruptcy entry remains on your credit report for 10 years, but many loan, credit card, and job applications ask if you’ve ever filed bankruptcy. If you answer no and the bank later finds out that you actually did file bankruptcy, you could be found guilty of fraud. In the case of employment, you could lose your job.

Settling debts with your creditors, when it’s done right, can help you avoid filing bankruptcy and dealing with the consequences of a bankruptcy.

Debt settlement will only stay on your credit report for seven years.

There’s no public record of you ever having settled your debts, so once the credit reporting time limit has run on your settled accounts, you won’t have to deal with the settlement anymore.

Relief From Overwhelming Debts:

The goal of debt settlement isn’t to get over on your creditors by paying them only a portion of the debt you accumulated. So it’s unwise to rack up a large amount of credit card debt with the expectation of settling it all.

If you’re legitimately having trouble paying back what you owe, debt settlement may help you. Once you’ve negotiated and paid your settlement, you’re essentially debt free in less time and at a lower cost than if you tried to pay off your debts on a typical repayment schedule.

Comparing debt settlement to bankruptcy, creditors may not get as much from you even if you filed Chapter 13 bankruptcy. They may not get anything at all if you file Chapter 7 bankruptcy. Creditors know this which is why they accept settlement offers from some consumers.

Repay Your Debts in Less Time:

On a good debt settlement program, you will repay your debts in two to four years. This is much less time than you’d spend paying back your debts normally (probably not an option if you’re considering debt settlement). Even debt consolidation, credit counseling, and Chapter 13 bankruptcy have debt repayment periods from three to five years. It might take decades to pay off debt if you stuck to the original repayment schedule.

Drawbacks of Debt Settlement:

Of course, there are negative consequences to debt settlement. Creditors aren’t guaranteed to agree to settlement offers, your credit will suffer in the meantime (if it hasn’t already), and you may owe taxes on the amount of debt that’s canceled.

As with any debt solution, you must weigh the benefits of debt settlement to the negative side-effects.

Why debt consolidation is a good option to get rid of debts

When you are drowning in a sea of debt, then you must try and get out of the situation as soon as possible. For this you may consider opting for various debt solutions. In case the problems that you are facing are due to the multiple number of your debts, then you must consider a debt solution called debt consolidation. However, you must be careful of a few companies that claim to offer you free debt consolidation as there is no such thing. You must choose a debt consolidation company with care.

In case you are not very sure about why you should use debt consolidation to get rid of your debts, then you must look at the various advantages that this process offers.

Some of the advantages of debt consolidation are as follows.

1. Reduced rate of interest: When you opt for debt consolidation the debt consolidation company negotiates with your creditors to get lower rates on interest for you. Thus, the total amount that you would have to pay towards your debts reduces as the interest rate reduces. So, it becomes easier for you to pay off your debts.

2. One monthly payment: After you choose a debt consolidation company, your financial situation is assessed and then a fixed amount is decided that you are to pay to the debt consolidation company every month. Apart from this amount you are not to make any payments. This amount is utilized to pay off all your creditors every month by the debt consolidation company. Thus, you are freed from the hassles of making payments to multiple creditors.

3. Improved credit score: When you opt for debt consolidation, then you send only a single monthly installment to your debt consolidation company. This amount is further distributed by your consolidation company among your creditors after they deduct a certain sum as consolidation fees. Thus, your creditors get paid every month which means that you will get improved credit score.

4. End to calls from creditors: When you have too many debts to tackle, then the huge number of creditor calls that you get may bring great problems in your life. When you opt for debt consolidation, then all your creditors are notified that they are to call your consolidation company in case they have any queries. Thus, your creditors can no longer call and harass you when you opt for debt consolidation.

These are a few reasons for which opting for debt consolidation is a wise decision when it comes to getting out of your debts.

Author’s Bio: M.J loves to write financial articles and she is a contributory writer associated with the Debt Consolidation Care Community and has written several articles on debt consolidation, debt settlement, bill consolidation and get out of debt for various financial websites. She holds her expertise in the Debt industry and has made significant contribution through her various articles.

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