Debt Settlement, FDCPAPeople want to pay their debts.  That is why when a junk debt buyer like Midland Funding, CACH, LLC, Cavalry SPV, or Portfolio Recovery comes along and threatens to file a lawsuit over a junk debt it allegedly purchased, many people will agree to the settlement offer proposed by the junk debt buyer.

This is usually a very bad idea.

Here’s why…

Agreeing to pay the debt back over time by entering into a settlement agreement may feel like the right thing to do, but as always, the devil is in the details.  What is usually not explained is that even though you are entering into a settlement agreement and even making monthly payments, interest is still accruing – usually at a very high rate.

On numerous occasions I have met with families that have entered into these agreements to pay off the debt, made the monthly payment like clockwork for years, only to find out that they owe more now than they did when they entered into the settlement agreement.

So what ends up happening is that you end up paying 10 and 20 times what was owed on the underlying debt – if you ever actually pay the debt off at all.

My recommendation is if you want to settle the debt, offer a lump sum.  If you can’t do a lump sum or they won’t accept what you can afford, then let them sue you and fight them in court.  There is a good chance you can win your case in court and even if you lose it is a better situation than the never-ending settlement payments.

Schedule a Free Consultation!

John Skiba, Esq. John Skiba, Esq.

We offer a free consultation to discuss your debt problem and help you put together a game plan to eliminate your debt once and for all. Give us a call at (480) 420-4028

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