{"id":23644,"date":"2010-10-21T00:00:00","date_gmt":"2010-10-21T00:00:00","guid":{"rendered":"https:\/\/nomoredebts.org\/?page_id=23644"},"modified":"2025-02-06T06:34:09","modified_gmt":"2025-02-06T14:34:09","slug":"debt-settlement-companies-the-good-the-bad-and-the-ugly","status":"publish","type":"post","link":"https:\/\/nomoredebts.org\/blog\/debt-settlement\/debt-settlement-companies-the-good-the-bad-and-the-ugly","title":{"rendered":"Debt Settlement Companies: The Good, The Bad and The Ugly"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;||||false|false&#8221; custom_margin_last_edited=&#8221;off|desktop&#8221; top_divider_style=&#8221;curve2&#8243; top_divider_color=&#8221;#e7dff3&#8243; top_divider_flip=&#8221;horizontal|vertical&#8221; bottom_divider_style=&#8221;curve2&#8243; bottom_divider_color=&#8221;#5b25af&#8221; bottom_divider_height_tablet=&#8221;80px&#8221; bottom_divider_height_phone=&#8221;50px&#8221; bottom_divider_height_last_edited=&#8221;on|phone&#8221; da_disable_devices=&#8221;off|off|off&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; da_is_popup=&#8221;off&#8221; da_exit_intent=&#8221;off&#8221; da_has_close=&#8221;on&#8221; da_alt_close=&#8221;off&#8221; da_dark_close=&#8221;off&#8221; da_not_modal=&#8221;on&#8221; da_is_singular=&#8221;off&#8221; da_with_loader=&#8221;off&#8221; da_has_shadow=&#8221;on&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<h1>The Good, Bad and Ugly About Debt Settlement Companies<\/h1>\n<p><em>Q: I heard an ad for a company. They said that they can settle my debt for much less than what I owe and I can get out of debt faster. When I called them, they also said that after I\u2019m done, I can easily rebuild my credit rating. I\u2019m considering going ahead with this but it just sounds too good to be true; is it?<\/em><\/p>\n<p>A: When you\u2019re struggling to pay your bills and you hear an ad like this, it may seem like the light at the end of the tunnel just got that much brighter. However, in the case of debt settlement, there are a number of factors and costs to consider before choosing this course of action. It\u2019s important to understand that your creditors will not accept less than what you owe without carefully examining your overall financial situation. They want to make sure that you are offering as much as you can, regardless of what a debt settlement company may claim.<\/p>\n<p>Other factors to consider are:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"210\" height=\"139\" title=\"Creditors can take you to court if you go on a debt settlement company's program and don't pay them\" align=\"right\" class=\"fright\" style=\"float: right;\" alt=\"Creditors can take you to court if you go on a debt settlement company's program and don't pay them.\" src=\"https:\/\/nomoredebts.org\/wp-content\/uploads\/2020\/11\/legal-action-gavel_feature_blog.jpg\" border=\"0\" \/><\/p>\n<ul>\n<li>If your offer is declined, will you be at risk of having your creditors initiate legal action against you by garnishing your wages or seizing your assets<\/li>\n<li>What may happen if only some of your creditors accept the settlement offer and others don\u2019t<\/li>\n<li>How long your credit rating will be negatively impacted because debt settlement only repays a portion of what you owe. The rest is left unpaid.<\/li>\n<li>Fees charged by the debt settlement company \u2013 many are charged up front<\/li>\n<li>If the company is licensed in your province and if they have a good service record<\/li>\n<\/ul>\n<p>Many of these companies will ask you to make monthly payments to them and once they have enough money from you, they will try to settle your debts. There\u2019s no guarantee that they\u2019ll be successful or if they\u2019ll return all of your money if they aren\u2019t. They also don\u2019t tell you that during this time, you will continue to receive collection calls because you will be falling further behind.<\/p>\n<p>Before deciding what to do, I strongly encourage you to do your homework and examine all of your options to resolve your financial situation. If you are unsure how to proceed get help from a reputable and accredited organization. What you may discover is that the long term impact of your choice today is much too steep a price to pay.<\/p>\n<p><em>&#8211; <a href=\"https:\/\/nomoredebts.org\/about-us\/ccs-president-peta-wales\">Scott Hannah is the President &amp; CEO of the Credit Counselling Society<\/a>. His weekly column appears on Mondays in the The Province Newspaper and is often carried by other major newspapers across Canada.<\/em><\/p>\n<p><em>Last Updated on February 6, 2025 <\/em><\/p>\n<p><strong>Related Blog Posts:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/nomoredebts.org\/blog\/debt-settlement\/what-debt-settlement-companies-dont-tell-you\">What Debt Settlement Companies Don\u2019t Tell You<\/a><\/li>\n<li><a href=\"https:\/\/nomoredebts.org\/blog\/debt-settlement\/debt-settlement-risks\">Ads for Debt Settlement Companies Sound Great. Why Not Go for It?<\/a><\/li>\n<\/ul>\n<p><strong>Learn More:<\/strong><\/p>\n<ul>\n<li><a href=\"\/debt-help\/debt-settlement-services-negotiation-solutions\">Is a Debt Settlement Program the Best Option for Me?<\/a><\/li>\n<li><a href=\"\/debt-help\/debt-settlement\/debt-settlement-program-dangers-companies-red-flags\">How a Debt Settlement Program Can Hurt You<\/a><\/li>\n<li><a href=\"\/debt-help\/debt-settlement\/debt-settlement-company-tips-scams\">Debt Settlement Tips: Avoid these Debt Settlement Company Tricks<\/a><\/li>\n<li><a href=\"\/debt-help\/debt-settlements-canada\">Overview of our Debt Settlement Program<\/a><\/li>\n<li><a href=\"\/debt-help\/debt-settlement-services-negotiation-solutions\">How We Approach Debt Settlements: How Our Debt Settlement Services Work<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><a href=\"\/blog\">&lt;&lt; Back to the Blog main page<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I heard an ad for a company that can settle my debt for much less than what I owe and rebuild my credit rating. I\u2019m considering going ahead with this, but it just sounds too good to be true?&#8230;<\/p>\n","protected":false},"author":3,"featured_media":24473,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"1080","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[111],"tags":[],"class_list":["post-23644","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-debt-settlement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.8 (Yoast SEO v24.8.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Good, Bad and Ugly About Debt Settlement Companies - Credit Counselling Society<\/title>\n<meta name=\"description\" content=\"I heard an ad for a company that can settle my debt for much less than what I owe and rebuild my credit rating. 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