What are the Pros and Cons of a Settlement Service?
It is important to understand how a settlement service works before you enroll. Here we outline the key benefits and considerations of settlement to help you further in your decision process about the best service for you.
If you are unsure about what is right for you, call 1-888-888-CARE to speak to a specialist who can help you further.
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Pros- Reduces your total debt drastically
- Lowers your monthly payments up to 70%
- As a legal service, provides you the legal backing of an attorney (if your provider offers this service*)
- Provides flexible payment arrangements (changes can be made if needed)
- Attractive alternative to bankruptcy
- Settlements typically completed in 3-5 years
| Cons- Credit profile may be negatively impacted
- Debt is not repaid in full
- Debt balances are likely to increase (i.e. late fees, interest) while settlements are being negotiated
- Collection activity may escalate
- You may be taxed on the portion of the debt you don’t pay back
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* Our recommended settlement solution is a legal service offered through a national law firm.
How do I choose a Settlement provider?