Debt Settlement: Interesting Statistics

Are you thinking about possibly having a debt settlement company help you settle your large amount of unsecured debt.

Interesting Debt Settlement Statistics and Facts

On average, it takes between 18 – 48 months for the debt settlement process to happen.

You will not be able to start settling your debts without an up-front lump sum that the debt settlement can use to start settling your debt.

Better deals are usually given at the end of the month.

You are actually legally entitled to a letter verifying your debt before you make any payments.

A debt settlement will show up on your credit report that it was “settled for less than the full amount.”

Debt settlement is better than bankruptcy because it’s off your credit report within 6 years maximum, compared to 10 years for bankruptcy.

Debt settlement reduces your overall debt, while debt consolidation transfers your debt to one simplified account.

Debt settlement will not work if you continue using your credit cards for purchases.

Most people pay 15-30% of the total amount owed when they go through debt settlement.

You may end up paying taxes on the money you didn’t pay back if it exceeds $600, which the government considers “a gift.” Check with your accountant about whether or not your settled debt will be taxable to you.