WARNING: Discover Why Debt Settlement Is Usually a BAD IDEA!Are you considering debt settlement? You are about to learn why debt settlement is a big mistake in most circumstances.
We have a better alternative to debt settlement, debt consolidation and bankruptcy.
The only 100% legal debt resolution program designed to help you avoid bankruptcy, consolidation and non-profit debt counseling.
Debt Settlement Pitfalls!Debt settlement is usually much more tempting than consumer credit counseling, debt consolidation, or bankruptcy. Those options are not good choices, and no matter how much debt settlement may seem to be a better solution, it is just as bad, if not worse. Debt settlement companies help you reduce your unsecured debt. They can usually reduce your debt by 30% - 60%. This sounds great for most people. It helps you avoid bankruptcy or one of the other unattractive options. However, it isn't really all that great. The amount that isn't paid to your creditors will be reported to the IRS upon settlement. It is reported as imputed income, and you will receive a 1099 for this. This "imputed income" must be reported on your taxes as actual income. For example, If your debt is $20,000, and the debt settlement company reduces that by 30%, you only have to pay $14,000 of your actual debt. But, the other $6000 is reported as actual income, and you would have to pay taxes on that money. Debt settlement is also reported to the credit reporting agencies, and it ruins your credit, just as consumer credit counseling, debt consolidation, and bankruptcy do.
There are also fees associated with debt settlement. These companies don't help you for free. They will charge you fees. This is big business, and the fees are not low. So, you may have reduced your debt, but you paid more money in the way of fees, and added income that you didn't actually receive that must be reported on your taxes.
Since the new bankruptcy legislation was passed, consumers will have fewer options for debt relief and the creditors are going to take advantage of this. One of the reasons creditors have been willing to settle for less than 100% of the debt owed is because they would rather collect "some" of the outstanding debt than take the risk of not collecting anything should the consumer file bankruptcy. Now that bankruptcy has become more difficult, creditors will have less incentive to settle a debt and consumers will have to look at other debt relief options.
What options are left? Our Debt Elimination program can help you eliminate 90% or more of your debt. Our program is the only of its kind. We have a network of trained attorneys that can help you get out of debt in less than 2 years. This is NOT a repayment plan, debt settlement or debt consolidation.
Fill Out The Form above for more information and a FREE Debt Elimination Consultation
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