How Long is a Debt Settlement Program?

A debt settlement program will vary in length depending on the settled debt amount. Many debt settlement companies are able to get people through the program in two years or less. A debt settlement program will help fix credit and get rid of a low credit score by working with creditors to reduce or eliminate late fees and interest rates.

Companies offer a free consultation to help people determine the debt they want to settle, how much money they will save throughout the course of the program, the length of the program and the monthly payment required. The company then works with the creditors on behalf of the debtor to reduce the amount owed. Debtors make monthly payments to the settlement company, who holds the money in an account until balances can be negotiated and paid off.

Debt settlement programs are not usually free. When looking for a program, make sure to find out what, if any, fees are charged, and when they are charged. For instance, many companies charge a percentage of the total debt as their fee for handling negotiations; however, this fee is worked into the overall monthly payment.

 

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