6. My credit card company told me they don’t deal with debt settlement companies?
We hear this all the time from potential clients. Creditors derive their income from the interest that they charge and debt negotiation threatens that revenue stream. The truth of the matter is that every creditor will settle for a reduced amount if they are not receiving any payments. They collect what they can in a lump sum and write off the rest as bad debt for IRS purposes. This in turn reduces their taxable income.