What is Debt Relief Company?
Debt Relief Agency helps consumers through credit advice will provide clients with advice on integrating debt relief, including the introduction of measures such as budget development assistance that works according to their needs, advice on how to use credit extensions wisely
Debt relief companies are third-party businesses that negotiate on your behalf in hopes of reducing, canceling, settling or changing outstanding credit debts. While that sounds great, debt relief services have plenty of disadvantages. In fact, they can be incredibly expensive and even damage your credit score. On top of that, debt relief companies can’t ultimately guarantee that your creditors will agree to reduce your balance.
Debt relief agencies can’t collect fees from their customers up-front. Instead, customers usually open a special savings account and make deposits towards the lump-sum, which is then used as collateral to negotiate with lenders in hopes of settling the debt.
It’s important to note that not all lenders may agree to a reduced settlement, so you might not be able to reduce your balance with this option. Additionally, debt relief services may only work with certain types of debt, like a credit card or personal loan.