Able Quote by Jean Chatzky
“Debt settlement companies work as a middleman between you and your creditor. If all goes well (and that's a big if), you should be able to settle your debts for cents on the dollar. You'll also pay a fee to the debt settlement company, usually either a percentage of the total debt you have or a percentage of the total amount forgiven.”
About This Quote
Source Book: Money Rules: The Simple Path to Financial Freedom, 2020
Debt settlement firms act as intermediaries, negotiating reduced payoff amounts with creditors, often charging a fee based on debt size or savings.
In simple terms: They negotiate lower debt payments for a fee.
Key Takeaway
Consider alternatives before hiring.
Themes
personal finance
debt management
negotiation
Mood
cautious
pragmatic
Type
advisory
educational
When to use this quote
- home mortgage
- credit card debt
- student loans
- medical bills
Key Concepts
risk assessment
consumer protection
financial planning
Questions to Reflect On
- Is the fee worth the potential reduction?
- What are the risks of default?
A Different Perspective
Fees can erode savings; success isn’t guaranteed.
![“In April, 1926, France and the United States finally negotiated a war debt settlement at forty cents on the dollar. The [French] budget was at last fully balanced. Still the franc kept falling. By May, the exchange rate stood at over thirty to the dollar. With a currency in free-fall, prices now…” quote by Liaquat Ahamed](https://sms4smile.com/quotes/img-quotes/b17/liaquat-ahamed-110670_debt-settlement_in-april-1926-france-and-the-united-stat_1686051.jpg)
![“You also need to understand that when you consolidate credit card debt into mortgage debt - like a home equity loan or a HELOC [ home equity line of credit ] - you're taking an unsecured debt and turning it into a secured debt.” quote by Jean Chatzky](https://sms4smile.com/quotes/img-quotes/e84/jean-chatzky-15313_cards_you-also-need-to-understand-that-when-yo_1363945.jpg)
