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Good evening. It has been awhile since my last post due to an unforeseen business trip. I was in Orange County, CA for 7 days and have returned to Colorado (it’s 25 degrees and snowing –an undesirable contrast).

As promised, I will dedicate the efforts of this article completely to explaining why you should stay away from debt settlement companies. Thankfully, using a debt settlement company was one mistake I didn’t make. I am guessing that the points I am about to present within this article will be enough to persuade you from going to a debt settlement company, but nonetheless, it’s important to keep this one point in the front of your mind: debt settlement companies are selling you a product regardless of if they claim to be nonprofit.

How Debt Settlement Companies Do Business

Usually you will find that debt settlement companies offer to negotiate your debt with creditors by promising to pay the debt in one lump sum (which obviously creditors love). However, the debt settlement company won’t make this offer until you have secured most of the amount agreed upon between the debt settlement company and the creditor. The agreed upon amount is secured by requiring you to setup a savings account and make deposits until the amount is met. While this can work in some cases, let it be known that in most cases, this will hurt your credit score and cost you more money.

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Original article from: The Better Credit Blog - Credit help, Dispute forms, and Fix bad credit

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