Debt Settlement shouldn’t be confused with Debt Consolidation. Debt Settlement is the process of negotiating the outstanding debt with each of your creditors in hopes to settle the account. Before negotiations begin you need to have a lump sum ready to pay the creditors once they agree to accept the settlement. Once the agreement has been reached the settlement has to be paid within 10 days.
Before you make a decision choose your Debt Settlement company wisely!
Canada has recently been inundated with American companies, offering “Debt Settlement” services. These questionable “Debt Reduction” operations have been investigated by the U.S. government and recent US legislative changes have forced “Debt Settlement” companies to cease operations in the US. However, many of these “Debt Settlement” companies are now targeting Canadian consumers with false claims of their ability to reduce debt by 40-80% in a short period of time and many Canadians are being lulled into believing these claims.
Reasons to Avoid American Debt Settlement Companies
- Most American debt settlement companies are not licensed to operate in Canada;
- Call centers are frequently located in the US, with only a “Virtual Office” in Canada;
- They are not Canadian credit counsellors;
- Their fees are usually aggressively collected;
- American debt settlers have little to no relationships with Canadian creditors;
- Canadian creditors can sue you while you’re paying American debt settlers;
- Misleading portrayal of themselves as Canadian companies on their websites;
- Perform a search on a company you’re looking at in Google.
“It’s not about the money. It’s all about the money.”Margaret Johnson, founder and CEO