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If you ask yourself a question “Is proposal of debt settlement a good idea?”, then you somehow realized that there are some tricky pitfalls in this issue. Yes, there are.

Debt settlement is a good idea to try to avoid bankruptcy. A good debt settlement company can help you to omit court-mandated controls of bankruptcy and other court issues. Sometimes but not always.

You should understand that debt settlement isn’t for everyone. It doesn’t work with all types of loans. Furthermore, as a thing that declares bankruptcy, it will change your credit score and impair your credit reports. Therefore, you should turn to the debt settlement only when you are on the verge of the bankruptcy – when you have no other reasonable solution.

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A good thing about debt settlement is that it doesn’t require a good score, large experience, or thorough accounting (it’s already based on the decreased balances of your working accounts).

Is paying credit card debt with settlement a good idea?

Credit card debt settlement is also a good idea in extreme situations (job loss and no other ways of income) or when your balance and interest rate are high. When your account hasn’t been transmitted to a collection agency, this process can save your credit score.