What You Can (and Can't) Get from Debt Settlement Software

Debt settlement software shows you how to proceed with "do it yourself" debt reduction. Borrowers choosing this option have determined settlement is the right option to manage their debt. However, they do not want to place their trust with a debt settlement agency, which may raise additional charges or even have priorities not in line with the borrower's plans. If you are considering using a popular debt settlement software program, you should be aware of its promises and shortcomings.

Promise: Impartial Advice

Debt settlement software companies will make the same amount of money regardless of the decisions you make. The software can guide you through suggested steps, but ultimately, you will have to decide which route to take. If you were to use a settlement agency, the agency would have a stake in your choices. You may be coerced into making a decision you are not comfortable with. Once you purchase your debt settlement software, you have already done business with the third party, and every decision is yours from that point forward.

Promise: Legal Information

It is important to understand the legal considerations of settling your debt. For example, you may need to know how long you can be held accountable for a utility bill if you closed your account in the past. The settlement software should have this information for you, categorized by state. You will be guided through a series of questions, and your answers to these questions will shed light on your continued obligation to the debts. Similar to filing taxes online or through a software program, using debt settlement software will have important information built in behind the scenes in an automated fashion.

Shortcoming: Lack of Loans and Financing Options

Unfortunately, when you settle debt, you need to pay the lump sum settlement immediately. This is why lenders agree to the settlement; they would rather have the cash now then go through years of trying to track you down for payments or allow the debt to go into default. Many borrowers will rely on a debt settlement company not only to negotiate the final payment but also to make the payment. Then, the borrower will repay the settlement company through a new installment loan. You will need to come up with the cash on your own if you are not pursuing this option. If you do not have the liquidity, then you will need to use a third party lender or settlement company to assist you with this step.

Shortcoming: Inability to Answer Questions

Debt settlement, even when it is automated through a software program, is extremely confusing. You will have questions about whether you are choosing the right option or if you have missed certain considerations. You may wonder if there is a legal implication, credit implication or tax implication to the decision you are making. While software companies may provide you with an email address to send questions to or a phone number to call, you may feel confused without the chance to meet an agent face-to-face.

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