Debt collectors will often offer debt settlement programs to consumers to coerce them to pay a debt. Although settlement offers may sound like a good deal, consumers should stay informed to protect their credit scores and their wallets.

What Is Debt Settlement and Why Do Collection Agencies Offer Settlement Programs?

When a collection agency or debt collector offers a consumer a debt settlement, they are giving the individual an opportunity to pay less than he owes on the debt, which will then be considered paid. Since collection agencies purchase accounts for pennies on the dollar, they can afford to offer these programs for much less than the amount originally owed and still make a profit.

Misconceptions About Choosing to Settle a Debt

Many people choose to settle a debt because of the damage a negative trade line does to their credit reports. Unfortunately, settling a debt does not remove the negative trade line unless the collection agency agrees in writing that the negative trade line will be removed when payment is received.

• Michigan Debt Collection Law

• Christian Debt Management Columbus

• Statute Of Limitation For Debt Collection Canada

• Credit Card Debt Consolodation

• Debt I35

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