Review:
Debt Settlement Programs
overall review score: 3.5
⭐⭐⭐⭐
score is between 0 and 5
Debt settlement programs are a form of debt relief where a debtor negotiates with creditors to reduce the amount owed in exchange for a lump sum payment.
Key Features
- Negotiation with creditors
- Reduction of total debt amount
- Single lump sum payment
- Potential avoidance of bankruptcy
Pros
- Potential for significant reduction in debt
- Avoidance of bankruptcy
- Opportunity to settle debts in a timely manner
Cons
- Can negatively impact credit score
- Requires upfront lump sum payment
- Not all creditors may agree to settle