Start by asking whether the debt is eligible
Debt settlement is typically discussed for certain types of unsecured debt, such as credit card or similar accounts. Not all debts are eligible, and program availability and fees may vary by state.
Understand the possible credit impact
The use of debt settlement services may adversely affect your credit. Ask how the process may apply to your circumstances before choosing a next step.
Do not overlook collection activity
Debt settlement may result in collection activity or lawsuits. If you need legal advice about an active matter, consult an appropriately qualified professional; AFP does not provide legal advice.
Ask about possible tax consequences
Any forgiven debt may be taxable. AFP does not provide tax advice, so consider whether you need guidance from a qualified tax professional.
Separate a process from a promise
Every financial situation is different. Outcomes and timelines vary, not all clients complete a program, and the consultation does not guarantee a result.