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.

20 comments:

jlangfel said...

Unfortunately for many they got overextended on credit that they should have never qualified for. This is a downward spiral that few can escape without help.

thenrifish said...

I have a little better understanding now, why a lender would consider reducing a debtor's obligation. I have seen the ads on T.V. and wondered why anyone would simply reduce the amount you owe them on your request to do so.

Mike said...

Like you pointed out, I think it is very important to check out the credentials before you put your faith in a service like this.

As thenrifish said, it is that easily sounds too good to be true. But I think you explained the reasoning behind it, and why a serious company actually can make it work really well.

Best regards,
MikeH

Jennifer said...

Excellent points. Unfortunately, with the economy in a downward spiral, more an more people will need professional debt help. Nice post.

Zintoh said...

Hello. I would like to recommend you some helpful information about credit card debt settlement .
Few months ago I had a very big problem with debt. This almost ruined my life and my business but these guys helped me to eliminate debt.
I very appreciate this.

SweetBebu.... said...

I suggest finding a company that offers both Credit Counseling and Debt Settlement. That way, when you speak to a financial counselor, you will find out what plan meets your needs. Also, make sure the debt settlement company you work with does not charge the settlement fees upfront.

Mike said...

Hi,it is an important question to a debtor before settlement his debt.Because every one facing the chop of financial crisis.And due to why it is important to find out an authorize debt settle agent.It is also necessary whether he/she give settlement receipt or not.


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danismith40 said...

Debtors who are no longer able to meet their financial obligations are eligible for debt settlement. for more information regarding their eligibility, they must get in touch with a professional debt negotiation company.

Charles said...

After going through a debt settlement program, it is a great idea to enroll in a credit repair program to help get rid of any negative items on your credit reports.

donnamoore01 said...

This post is awesome..i've been reading tons of crap posts from other blogs, but shows you have a more educated reader base.
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Sandra said...

I read your blog and i agree with you. I am always looking out to pre approved credit card offers

Hair said...

Very nice post.

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Debt Settlement is a process in which a representative of debt settlement company negotiate with the creditors to settle down the debt owed by you.
In this case you should always choose a reliable company to settle down your debt. Debt settlement company takes some fees from you for their service. The amount that you pay to debt settlement is saved in an other account and when a huge amount is collected and then finally the settled amount is paid to the creditors.