If you’ve been dealing with debts for some time now you may have been looking for ways to cut down debt once and for all. However you may have seen some ads on TV showing how debt negotiation could solve that problem for you. However before you consider this option you may want to read this article first.
The first thing you should know about debt negotiation is that you should be facing some sort of severe hardship. For example if you have a severe medical condition that is costing you a lot of money this be enough reason to consider the idea of debt negotiation.
Secondly, you should know that if your credit hasn’t been trashed yet it will be. The reason for this is because of the method these companies like Debtmerica will use to pay creditors. What they will do is pay creditors one at a time. For example if they negotiated a better deal with one credit card company than another they will more than likely pay all available funds towards the credit card with the better deal to pay off faster.
However, at the same time they may be neglecting all the other payments towards the other companies in order to pay that one debt off. This could result in some serious negative marks on your credit score in the end. This is why you need to pay attention as to how debt companies operate so you don’t fall into one like the Debtmerica Relief scam.
Finally, the last thing you need to consider is how much these companies charge. The fees for something like this can be expensive. In fact the average debt company will charge around 15% of the total amount of debt you put into the program. For example if you have $20,000 of debt in the program you will end up paying around $2500 in fees to them. Is this what you really want to do?