About Debt Settlement

We’re going to talk about debt settlement. It’s very popular today for a lot of folks to be telling you that you can walk away from your debt without any consequences whatsoever, that it’s easy. There’s even some out there that they’re telling you that you can legally walk away from your debt. My question to you is this, “Do you understand that whatever you do in the finance, there are consequences?”

Debt settlement simply means something such as this: suppose I owe you a thousand dollars, and I realized I can’t afford to pay you money on that thousand dollars any more, or I’ve come up with a little extra money and instead of paying you on the two years we agreed I want to pay you off early. So I would call you or get back in touch with you and say, “Hey, instead of me paying the thousand I owe over the next two years, would you be willing to settle for four hundred, five hundred, or six hundred dollars today?” If you’re willing to do that, and we agree and we signed paperwork, that’s debt settlement.

That’s allowing me to pay off the debt less than what I originally said. Do keep in mind that there are consequences that you might not be thinking. One of my favorites to warn people about is your Uncle Sam does not like losing money. And do understand that he thinks you got a break; he’s going to want to get a break. He’s going to want a piece. So be careful. As in all things financial, understand what it is you’re signing. Understand the true cause. Understand everything associated with that and some of the consequences down the road. So ask around. Seek counsel from companies such as myself. Definitely know what it is you’re a signing at all times.