Can I Cancel My Contract With a Debt Settlement Company
Many clients come to use seeking to file bankruptcy whom have entered into a contract with a debt settlement company. Many times, people believe that signing up with a debt settlement company can help them get out of debt and have little impact on their credit score. Many assume that debt settlement won’t hurt a credit score as bad as a bankruptcy would. This is false. Credit card companies won’t even negotiate debts until you have fallen behind atleast 90 days. Debt settlement companies offer to negotiate debts for a lump-sum payment for a fraction of the price. However, they fail to tell consumers that as their accounts continue to go into delinquent status, the impacts on their credit score can be severe. Debt negotiation can take anywhere from 36 to 48 months. This is almost three years of accounts being in delinquent status. During this time interest, fees and penalties continue to accrue. Most consumers can’t keep up with these payments and thus, never make it to the end of any debt settlement plan.