Seeking the help of a debt settlement company to pay off debt

[Volts]

What do you think of seeking the help of a debt settlement company to pay off debt? Let me explain how it works. You stop paying your creditors for a certain period of time and you give money to a debt settlement company for a certain period of time. The debt settlement company places your money in an account. After the debt settlement company accumulates a certain amount of your money, it contacts your creditors to settle your debt for an amount that is less than you owe. Then, the debt settlement company pays your creditors and you debt is settled.

The advantage of debt settlement is that you pay less money for a debt. Your monthly payments to the debt settlement would less than the monthly payments you would make to your creditors.

The disadvantage of debt settlement is that your credit score drops while you are not paying your creditors. Another disadvantage of debt settlement is that some creditors might not allow you to settle a debt less than the amount that you actually owe. Moreover, your creditor may report on your credit report that you debt was settled less than the amount you owed.

Is it unethical to try to get a debt settled for an amount less than the amount you owe?

 

[Truster]

The world can do as they please and not pay what they owe. A converted man has a conscience and pays his bills. I have lent money to a chap I know and while he still owed me money he went off to Turkey on holiday. He doesn't know the Almighty and when I lent him the money I didn't expect it back. However he is down to the final payment that should have come in yesterday, but he neither paid, nor emailed, nor sent a text. I know the money is safe, but it would be safer in my bank.

 

[Truster]

If you profess to be saved then the fact you have asked the question means you are in doubt so for you it would be a sin to pay less than you owe, because of the doubt.

 

[elohiym]

Is it unethical to try to get a debt settled for an amount less than the amount you owe?

Why would it be? Contracts can be renegotiated.

 

[whitestone]

What do you think of seeking the help of a debt settlement company to pay off debt? Let me explain how it works. You stop paying your creditors for a certain period of time and you give money to a debt settlement company for a certain period of time. The debt settlement company places your money in an account. After the debt settlement company accumulates a certain amount of your money, it contacts your creditors to settle your debt for an amount that is less than you owe. Then, the debt settlement company pays your creditors and you debt is settled.

The advantage of debt settlement is that you pay less money for a debt. Your monthly payments to the debt settlement would less than the monthly payments you would make to your creditors.

The disadvantage of debt settlement is that your credit score drops while you are not paying your creditors. Another disadvantage of debt settlement is that some creditors might not allow you to settle a debt less than the amount that you actually owe. Moreover, your creditor may report on your credit report that you debt was settled less than the amount you owed.

Is it unethical to try to get a debt settled for an amount less than the amount you owe?

I actually thought many would comment to you on this subject,just Google ''usury in the new testament'',,, https://www.google.com/search?clien...a=X&ei=ygtpVJqTJ9DdsAT2gYHIDw&ved=0CBwQvwUoAA and go from there,,,you don't have a clue if you will be alive next month,what will you do if you still owe these people,how will God see it?,,,,,,at best you will end up with a number that is equal to your name in your forehead,(debit card pin number),,,pay them off and then cut them up,don't buy things you cant pay cash for,,,,

 

[CabinetMaker]

If you settle a debt for less than the original amount, the IRS can and will, charge you income tax on the difference.

 

[The Barbarian]

Most businesses would be delighted to help people mired in debt, find payment plans that would allow them to get their debts settled. Often, it's possible to renegotiate a bill in order for the creditor to get something.

Those "debt settlement" companies are often rip-offs that leave you worse off than before. Be sure whoever you choose is a non-profit. Otherwise, you might be just getting in deeper, as many of them charge excessive fees for very little service.

This might be a good place to start:
https://www.nfcc.org/index.php#

 

[Volts]

Most businesses would be delighted to help people mired in debt, find payment plans that would allow them to get their debts settled. Often, it's possible to renegotiate a bill in order for the creditor to get something.

Those "debt settlement" companies are often rip-offs that leave you worse off than before. Be sure whoever you choose is a non-profit. Otherwise, you might be just getting in deeper, as many of them charge excessive fees for very little service.

This might be a good place to start:
https://www.nfcc.org/index.php#

Debt settlement companies charge a lot of fees. You are right about that. Thanks for the link to the credit counseling company.

 

[Volts]

If you profess to be saved then the fact you have asked the question means you are in doubt so for you it would be a sin to pay less than you owe, because of the doubt.

That's true. If you are not sure that something is sinful or not, then don't do it.