What Debt Settlement Covers
Debt settlements only work for unsecured debts, which are debts that you haven’t put up collateral for. That’s because creditors have no reason to accept less for your debt when you could just sell the collateral to pay them back, whether that’s your car, house, or other assets. If most of your debts are secured in Canada, then this debt relief program is probably not an option worth exploring.
A debt settlement negatively affects your credit because it allows you to repay less than what you owe. This negative effect will last for 6 years unless you use the debt settlement program and services of a non-profit credit counselling organization like us. Unlike several debt relief companies, when we negotiate a settlement for a client, the effect on your credit lasts 2 years.