Just signed with a company for Debt Settlement

June 10th, 2012 by Questions

HI
I just signed with Leading Debt Arbitrators for debt settlement. I have now heard that debt settlement may not be the best thing and that the company might not be legit.
I am worried as I have 15,000 is debt and need to find a way to pay it off.
I heard Consumer Proposals aren’t always good as it can provide the client with a bad credit rating.
So, which is actually better?

Posted from: Ontario

Questions

One Response to “Just signed with a company for Debt Settlement”



, A licensed trustee said:

In my opinion, most debt settlement companies are not legitimate. Before you start paying them any money ask them what their success rate is – by that I mean ask them how many of the people they sign actually complete their programs and settle on their debts. My guess is they won’t tell you, or they won’t be able to “back-up” whatever number they do give you… The number is less than 1 in 10 so be VERY careful.

Anything you do that pays back less than 100% of what you owe will damage your credit. If you file a consumer proposal your credit rating will drop to an R7 – the same rating you’ll get with a debt settlement.

You may be the 1 in 10 person that debt settlement makes sense for, but if it was me, I’d go and speak to someone else before I start making my payments to make sure…

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