Debt Settlement Critics Ignore Benefits

Dallas, Texas / Debt settlement has become a widely used form of consumer debt consolidation because of its popularity from the benefits versus potential risks, and in many cases, the consumer is already subjected to the risks and debt settlement is their last chance to repay debts without having to file for bankruptcy, according to Dallas debt settlement company FH Financial Service.

The company says the first advantage debt settlement has is that it allows consumers who are up to their eyeballs in debt the opportunity to avoid bankruptcy, yet still find a way to eliminate their debt. The program is for people who are already suffering hardship and have fallen too far behind in payments to catch up. Most debt settlement programs allow the consumer to keep a portion of his or her payments in their own savings account.  This is up to the consumer to maintain the required monthly installments.  It makes it extremely difficult – if not impossible – for a debt settlement program to work if consumers do not hold up their end of the agreement and maintain their monthly savings deposits.

The Dallas debt settlement company says that many customers get enrolled into payment plans they do not understand.  The confusion comes from the budgeted savings plan and paying the debt settlement program fee.

“Customers should look for a clear payment plan that shows the payments that go towards the plan’s fees and the money that goes towards the consumer’s savings account,” says Alex Fender, vice president of FH Financial.

The industry standard within debt settlement companies is to charge 15% of the debt. Some companies will charge an even higher percentage if they base it off savings.

FH Financial is a national debt settlement company with headquarters in Dallas, Texas.  The company posts actual settlement letters that its clients have obtained on its website.  One settlement letter has a client settling his debt for 90% off the balance and a total savings of more than $13,000.

The next advantage to debt settlement is that it protects consumers from dealing with collection agencies. It is widely known that bill collectors have, and will continue to abuse and take advantage of people who are struggling to pay their bills, says one company official.  When someone enrolls into a debt settlement program, the collection phone calls stop because they get rerouted to the company’s phones.

FH Financial Service also cites the shortened time frame of paying off debt and the overall savings as major advantages to a debt settlement program. The company does point out there are some risks involved in consolidation programs but those vary from case to case. A debt settlement company can answer specific questions for each client.

For more information, please visit: www.FHFinancialService.com

About FH Financial Service, Inc.:  Located in Dallas, Texas, the company is a debt relief and debt counseling company. It is a member of both the International Association of Professional Debt Arbitrators and the United States Organizations for Bankruptcy Alternatives.