Wednesday, April 9, 2008

Which debtors are well suited for debt settlement?

To start off I would appreciate for my readers to first understand which consumers are in need of debt settlement as a means to become debt free. One illustration of those in need are the consumers who pay only the monthly minimum payment. Another prime candidate for debt settlement is the person who has already fallen behind. The next individual who is ready for debt settlement is the person who owns a home with money coming in who is sincerely thinking about filing for bankruptcy.

At this point you must be thinking what is debt settlement? Debt settlement is a method of gathering enough money to arrange a one time payment that is negotiated down to a lower amount than the original balance owed. The first issue that pops into mind for most debtors at this point is, how in the world do you get your creditors to agree to a lower amount?. Well the answer is pretty simple, you need to fall behind on the debts owed. The reason being no credit card issuer in the world is willing to negotiate on a debt that is current. Which is logical why would the creditors negotiate for less if they think you can continue to pay their monthly minimum payments for the next thirty years, earning them large amounts on interest. So one must come to grips that in order to achieve a decent settlement you need to go behind on payments.

So what are the advantages of going through this process? The greatest advantage of settling your debts is that of saving money. Which in turn correlates with the next benefit, which is saving years of time. With the debt settlement process a debtor can expect to save around forty to fifty percent of what is owed, and become free of debts within 2-3 years.

When searching for a establishment to employ for debt settlement one should do their research before contacting the company. To ensure the establishment you will be using is reputable and can get the job worked out the right way. A good spot to start is too check up on the Better Business Bureau, most good standing companies will be registered with the BBB. Another extremely wise measure to take when seeking out a organization to do debt settlement is checking the Attorney General. Many states' Attorney General will list any company that is being investigated. As you can tell any company being investigated will not be a decent company to sign up with.