Debt settlement

Debt Settlement

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Debt Settlement is a relatively new service being offered in the United States and it has become increasingly popular due to the current economic crisis. The service itself is different from other services with the same goal and so it is very easy for clients to be confused about such programs. Consumers should be fully aware of what this service is and what it isn't before enrolling.
Debt settlement is a program for those with financial hardship. If one does not struggle to pay their bills they should not typically enroll in such a program. This service is one which offers a compromise between one's current hardship and filing bankruptcy.
Monthly payments do not go directly to ones creditors. Payments only go towards two places, fees and escrow funds. The escrow funds are used to settle the accounts, typically in a lump sum, with the creditors. As it often takes months or even years for enough funds to accrue in escrow, some creditors do not see any money at all for a long time.
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