Debt settlement
Debt settlement companies can give you similar services as a credit counsellor. But they are for-profit businesses. This means they make a profit from helping you. There are other differences that are important.
When you use debt settlement companies, there are some extra risks. For example, they may:
- not tell all your creditors about your repayment, so creditors may keep calling you
- pay one bill at a time, so creditors may sue you to try to collect their money
- represent both you and your creditor, which is a conflict of interest
And they might not help you learn how to stay out of debt.
Debt settlement companies go by different names including debt consolidation, debt relief, and debt reduction.
Debt settlement companies must be registered with the Government of Ontario.
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