3494: What is Debt Settlement and How Does It Work? by James Lambridis of Debt MD on Debt Settlement Explained

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Episode 3494:

James Lambridis explains how debt settlement companies negotiate with creditors to reduce the total amount you owe, offering a potential path out of overwhelming credit card or medical debt. He also outlines the structure of settlement plans, including escrow-style savings and lump-sum negotiations with creditors. Just as importantly, Lambridis highlights the risks, tax consequences, credit score damage, and possible scams, so readers can make informed decisions before enrolling in a program.

Read along with the original article(s) here: https://www.debtmd.com/blog/what-is-debt-settlement-and-how-does-it-work?

Quotes to ponder:

"If it seems too good to be true, walk away."

"When you decide to go the debt settlement route, a representative from the debt settlement company will work with your creditors to lower the debt you owe and help you get out of the red and back in the green."

"You should stay away from any company that absolutely guarantees it can settle your debt."

Episode references:

FTC Telemarketing Sales Rule: https://www.ftc.gov/legal-library/browse/rules/telemarketing-sales-rule

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