Ready to be financially free?
Join here. Terms apply.
Debt settlement is essentially a negotiation service. You’ve probably heard of National Debt Relief, Accredited Debt Relief, or Freedom Debt Relief. These companies work by negotiating with your creditors to settle your debts for less than what you owe. The program is geared towards people who are nearing bankruptcy and have nowhere else to turn - making them often a bit restrictive and pricey. We don’t recommend this for people who are able to make their payments.
They negotiate with the creditors by offering a lump sum payment to your creditors in exchange for them forgiving part of your debt. The idea is that you pay the debt settlement company a monthly fee, and they use that money to negotiate with your creditors on your behalf.
Well, that's a bit of a tricky question. Debt settlement companies can be effective in helping people settle their debts for less than what they owe. But there are a few things you should know before you look into it:
Depending on your situation, you could avoid having to pay debt settlement fees by handling your debts in another way. Consider your options across the board, including balance transfers and debt re-finance. If you have that negotiation power in you, you could always try to negotiate with the creditors yourself! 👩⚖️
So, should you work with a debt settlement company? Well, that's ultimately up to you. It's important to understand the fees involved, the potential impact on your credit score, and the fact that there are no guarantees that debt settlement will work for everyone. As always, it's important to do your research and weigh your options before making any financial decisions.
Debbie is an app that uses behavioral psychology and prizes to help you pay off debt for good. The app rewards you for paying off debt with lower interest rates on your current credit, as well as cash. Start our free money psychology course today to get qualified. Start Now →
Having a less-than-perfect credit score can make it challenging to access credit and financial opportunities. However, it's important to know that all hope is not lost. Many financial institutions and credit providers offer credit options for individuals with bad credit, and with some strategic steps, you can improve your financial situation.
Do you feel like your bills always manage to be due before you get paid your bi-weekly? I bet this causes a lot of annoyance - now, there are lots of earned wage access apps, like Earnin and Moneylion, that help you get your money early. But what if you could sync up your bills with your paydays? When your payments line up with your income, you dodge those pesky late fees, slash those interest charges, and make your financial journey a whole lot smoother. So, stick around, and we'll show you the ropes on how to make it happen!