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Finding debt relief may not be as easy as debt settlement claims

Struggling with debt issues is not an unknown concept to many Connecticut residents. Unfortunately, any number of events could lead to a person facing insurmountable bills and accrued debt that leaves them feeling lost. Luckily, finding debt relief is not impossible, but it is important not to be taken in by options that may not help.

In particular, debt settlement is often considered a viable relief option, but it is not as helpful as some may believe. In fact, creditors do not even have to work with settlement companies. As a result, a settlement company may claim that it could help consumers, but if creditors do not want to negotiate, the company can do little, if anything, to actually help. If the company charged upfront fees, consumers may even be worse off than they were before seeking this type of help.

Additionally, even if a person does receive a debt settlement, it does not necessarily mean that his or her money problems are over. Creditors could still sue for payment, and consumers could face serious repercussions, like wage garnishment. Additionally, a person could face tax implications because written-off debt may look like income to the Internal Revenue Service.

Understanding the pros and cons of different debt relief methods could help struggling individuals find the right paths. Of course, some options are purposefully made to look better than others even though they may not necessarily be helpful. Connecticut residents concerned with their finances may want to consider looking into reliable relief methods, like bankruptcy, and determine whether such avenues could prove useful to them.

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