What kind of debts does the average settlement agency handle?
Most agencies handle only unsecured debts. These include: credit cards, medical bills, department store cards, balances from repossessions, gas cards, personal loans and accounts in collections. In addition, settlement companies typically do not handle secured debts, such as mortgages, car loans, and student loans. Very few handle payday loan debt. Q: How long does the average settlement program last? A: The average program length in debt negotiation varies from 12-36 months. If a company pushes you past 36 months, watch out—the likelihood of successful negotiations decreases dramatically as one prolongs how far past due they become. In general, the rule of thumb is that one should always shoot for shorter programs if their income can support this. Q: What is the difference between settling your debt and credit counseling? A: Credit counseling agencies set you up on a monthly payment plan over 5-6 years in which the client must pay back the entire amount of debt owed. So, they do not
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