It is likely that many individuals have heard of various schemes for getting rid of debt. However, some of those options may not be entirely reliable, and South Carolina residents facing considerable debt may find themselves in deeper financial trouble as a result. Therefore, individuals may wish to be wary of companies offering debt management deals that seem too good to be true.
Many supposed debt-relief companies claim that they will work with creditors to lower debt balances, allowing debtors to work to pay off the remaining debt. Individuals who attempt to utilize these services may be required to pay fees to the companies in order to have their cases opened. In some cases, these fees can be considerable up-front payments, or fees may be levied depending on the amount of debt.
Additionally, rather than making payments to creditors themselves, individuals utilizing negotiation companies send their money to the negotiators. The negotiators are supposed to then make payments once enough money has been collected. However, it may take a considerable amount of time before the deemed-appropriate amount has been collected in order to offer a settlement. By that time, considerable damage to credit scores may have occurred.
If South Carolina residents would like to take part in a reliably effective way to handle considerable debt, looking into bankruptcy may be a wise step. Though many individuals may want to avoid this option for unknown reasons, bankruptcy could prove considerably beneficial in discharging outstanding debts. If individuals are interested in learning more about this option, they may wish to consult with experienced attorneys.
Source: macon.com, “Beware of companies offering to negotiate with your creditors to cut your debt”, Kelvin Collins, Aug. 16, 2016