If you’re experiencing a hardship or having problems making your payments, we strongly encourage you to contact Upgrade before enrolling with a debt settlement company. One of our knowledgeable and experienced Upgrade team members will be able to discuss your options and answer any questions, at no additional cost to you. Compared to a debt settlement company, we may be able to offer options that are better for your wallet and for your credit. Contact us at firstname.lastname@example.org or call us at (844) 899-9931.
5 Things to Know Before Working with a Debt Settlement Company
Debt settlement companies typically claim they can negotiate with your creditors to reduce the amount you owe, but debt settlement companies may leave you deeper in debt than you were when you started. Before working with a debt settlement company you should consider the following:
- Fees from the debt settlement company. Debt settlement companies usually charge expensive fees based on your enrolled debt NOT your negotiated debt.
- Fees from your creditors. Debt settlement companies often advise you to stop making your credit card or Upgrade payments. If you stop paying your bills, you will probably incur late fees, penalty interest, and other charges, and you should expect your creditors to intensify their collection efforts.
- Math that doesn’t work in your favor. You may continue to incur penalties and fees on your debt until it settles. Unless the debt company manages to settle all or most of your debt, you may pay more in fees than you save from a settlement.
- Serious damage to your credit. Working with a debt settlement company and following their advice could seriously damage your credit score and limit your ability to get credit in the future.
- No promises. There is no guarantee that Upgrade will be able to negotiate a settlement with your debt settlement company. Your loan may continue to accumulate interest and applicable penalties or fees until charge-off and your delinquency status will be reported to the credit bureaus. Upgrade may send your loan to an attorney to possibly pursue legal remedies and judgment.
Upgrade does not partner with debt settlement companies. We encourage you to work with us first to find your best option. If you're already enrolled with or plan to work with a debt settlement company, please email us your authorization to release information to email@example.com.
To keep your account in good standing we must receive your contractual payment amount on its due date every month. In cases where your debt settlement company mails us a payment that’s less than the full settlement amount, we will apply the payment directly to your past due balance or your monthly payment due. We will not treat this payment as a final settlement.
Learn more from the Consumer Financial Protection Bureau about debt settlement companies.