If you are like many people who are having financial difficulties and are trying to find a way to stay afloat, there are a few options. You can work with your banks on a debt settlement at minimum, or you can file bankruptcy and restructure your debt.  In this article, I will explain the consequences of debt settlement that will affect not only your credit score but possible future ramifications. Debt settlement is generally an agreement made by a lender to a debtor in order to pay off a certain amount of the outstanding debt. The amount can be between 20% and 75% of what is owed. However, there are certain things that a debtor must watch out when trying to decide what to do. First of all, many people do not realize that a bank or lender would much rather a debtor work out a debt settlement agreement where they would some of their money back, rather than have the debtor file bankruptcy. If a debtor files bankruptcy , and the lender is an unsecured creditor, it is very possible that they could end up with nothing as the secured lenders are reimbursed first. However, debt settlement agreements are not easy to …

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What Are The Risks Of Using Debt Settlement Companies?