Latest Posts
Home > Ask The Get Out of Debt Experts > Should I Use a Debt Settlement Company?

Should I Use a Debt Settlement Company?

“Dear Steve,

Have a total of $74,000 debt to 5 different credit companies. My mortgage payments went double because of variable rate. I am current with my payments. Cannot pay my credit bills anymore. I want to settle with them. I can borrow around $ 22,000 from close relatives and selling some stuff. My questions are first should I use a settlement company or do it myself. Second, every settlement company I research there are bad and good reviews about them. Which one should I choose and how?

My questions are first should I use a settlement company or do it myself. Second, every settlement company I research there are bad and good reviews about them. Which one should I choose and how?

Emad”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Dear Emad,

Only being able to afford an overall settlement of 29% of your debt is not a realistic expectation. Also keep in mind that settling will result in bad credit, potentially being sued, and a large bill due the IRS for forgiven debt.

If what you are trying to do is keep your house but repay your debt based on what you can afford that bankruptcy might be your best bet. Click here to find a local bankruptcy attorney and go discuss it with them.

If you want to discuss if debt settlement is right for you, talk to Damon Day. He’s a straight shooter and can honestly answer questions for you about debt settlement.

Or, if you don’t want to talk to Damon Day and there is a particular debt settlement company you are thinking of using, let me know and I’d be happy to research and review them for you.

Big Hug!

Should I Use a Debt Settlement Company?
Get Out of Debt Guy – Twitter, G+, Facebook

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

Should I Use a Debt Settlement Company? by

Share This and Spread the Word

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.