Debt Negotiation – Debt Settlement Related FAQs

What Is Debt Settlement? What Is Debt Negotiation?
Debt Settlement is negotiating with collection agencies to settle the debt you owe with them for deliquent debt that you owe. If you use a debt settlement company, most of them set up a bank account in your name that you make monthly payments to. Then as you build up enough money in the account, the debt settlement company will pay off you negotiated accounts one by one until you are out of debt.

What Is The Difference Between Debt Negotiation and Debt Settlement?
There is no difference between debt negotiation and debt settlement? Both involve negotiating with collection agencies to payoff your delinquent collection accounts.

Is There A Difference Between Debt Settlement and CCCS?
Yes. Debt Settlement is used once your bills have gone delinquent or to collections. CCCS, Consumer Credit Counseling Services is used to negotiate your debt when your credit is still good, buy you are only making minimum payments and not paying down your debt.

Does Debt Settlement or Debt Negotiation Affect My Credit Report?
Technically your credit report should already be damaged by the time you enter into a debt settlement or debt negotiation program. A reputable debt settlement company or debt negotiation company will not tell you to let your accounts go bad if you are still paying your bills.