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What is debt settlement?
Debt settlement is the process of negotiation with creditors by a professional agency which results in having to payback only a percentage of the debt you owe.
How does a debt settlement program work?
A professional agency negotiates with your creditors. Typically, if a creditor can not collect on the debt, they write it off as a loss on their taxes. Creditors will reach agreements to settle debt in order to recover monies they often would not of have been able to get. It can be a win-win situation.
Will debt settlement affect my credit?
This depends on your current situation. Your credit may be adversely affected due to non payment of existing debt that you wish to settle. In the process of reaching an agreement with your creditors, many items can be negotiated such as removing negative remarks. This depends on the creditor.
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