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I have communicated with a company and have a contract however I have not done anything yet. My hesitation is the 1st 4-5 payments that I would have drafted from my account would go to them. This would mean that the people that I owe money to would not receive anything for almost half a year. Their thought is that the companies would want to settle because of my delinquence and that after I settled (which they said it would take 3 years) I would have good credit. I have grown up with the idea you pay your bills. I want out of debt badly and I know that I need some help. This company states that I would have to pay about $13000 which is a $10000 decrease. They would receive about $3-4000 of that money and my creditors would receive about $9-10. I am afraid because I do not have the money to get screwed. Please help.

Hello, while I am not familiar with the company you talk about, the process you describe is pretty typical for debt settlement. In debt settlement typically:
1. You pay the company approximately 15% of the toatal debt you ask to be settled
2. Your debt will go into default from non-payment
3. Many companies take a large chunk of their fees in the first few months
4. The process does take up to 3 years

Debt settlement has its risks and is not quick or inexpensive which is why it should primarily be used by people in dire situations seeking to avoid bankruptcy. You want to be careful not to be “oversold” on the process and them telling you your credit will be fine at the end of the process is a red flag to me as that is not the case. Your credit will be damaged and will take some years to correct itself which is the downside but for some people who find a reputable company it allows them to become debt free when they otherwise have no alternatives. I hope this helps.