Credit may be affected
The use of debt settlement services may adversely affect your credit.
Debt settlement
Understand the tradeoffs before the opportunity.
Debt settlement may be discussed for certain unsecured debts, but it is not a universal fit and it does not come with guaranteed outcomes.
The practical overview
What the conversation should cover.
For certain types of unsecured debt, a consultation may include a discussion of whether settlement is one of the options to examine. Any review should also explain the risks, uncertainty, and other considerations that can shape the decision.
American Financial Progress does not provide tax, bankruptcy, accounting, legal, or credit repair advice.
What may be discussed
- Your current unsecured debt picture
- Options that may be available
- How a possible path may work
- Questions about tradeoffs and next steps
The honest version
Four points to put in view early.
Collection can continue
Debt settlement may result in collection activity or lawsuits.
Forgiven debt may be taxable
Any forgiven debt may be taxable. AFP does not provide tax advice.
Results vary
Results vary by creditor, balance, client circumstances, savings behavior, and other factors.
Questions before a decision
Use the consultation to test the fit.
Ask what debts may be eligible, how fees and availability apply to your state, what can happen during the process, and what is not guaranteed.