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Written by Barbara Haise
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Friday, 13 June 2008 21:30 |
We live in a credit based society and the price of almost every product sold in the market is rapidly increasing as inflation rates rise. All of the freedoms that credit might provide will often end in the entrapment of debt. Unfortunately for many, this usually results in bankruptcy. However, there is a better option called debt settlement.
Along with modern times come modern solutions to your financial troubles and the key to this is debt settlement. This is the process of eliminating your current debts for a price much less than the amount you actually owe. Through the help of a debt settlement company who specializes in dealing with the relentless creditors, you can soon be debt-free. The company will provide you with a professional consultant who represents you and your interests. Together, you set up a payment plan that you can truly afford and then they negotiate a settlement with your creditors.
All you have to do is contact the debt settlement company and provide them with the information they need and they will do all of the leg-work for you. The debt settlement company will arrange a trust account for you and then they contact your creditors to begin arbitration. Due to their knowledge and relationship with the creditors they are often able to negotiate a reduced total debt by 40 to 60 percent. The amount of time it will take to clear the debt will vary depending on how much you owe and how much you can afford to pay. This amount is based on your disposable income, i.e. what is left in your wallet after you have paid all of your expenses and taxes.
There are so many reasons why people with overwhelming debt choose debt settlement. Primarily, you will be allowed to pay less and you won’t have a bankruptcy haunting you for the next 10 years. Also, instead of paying the amount that you owe plus the late fees and interest, you make an affordable payment to the debt settlement company whose focus is reducing your total amount owed. Other benefits include the fact that you can develop a settlement plan with an extended amount of time to pay your debts if needed. Some settlements will allow you to pay the amount within 2 to 5 years or even longer. This can be very helpful if your creditor is demanding immediate payment and you really do not have enough money to pay them in that short period of time.
Another huge benefit is that you avoid the harassing and abusive calls coming from creditors because they now deal with your debt settlement consultant. Moreover, the debt settlement company will also make sure that you no longer receive such calls. The job of a debt settlement company is to negotiate on your behalf. They are there to help eliminate the pressure and stress added to your life due to crushing debt and hounding creditors. If you have bad-debt you should definitely consider this option. |
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Written by David Banervos
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Friday, 25 April 2008 16:51 |
If you are reading this you are either curious about debt settlement or you already know you need an alternative to bankruptcy. Ignoring the problem won't make it go away so what do you do? Well, you can declare bankruptcy but then be labeled for the next 10 years every time somebody runs your credit. At least with debt settlement you can overcome some of the stigma after a few years. I personally believe that negotiating your debt is better option. At least you're making an effort to pay back some of what you borrowed. Besides, you have probably paid what you owe in late fees and interest already anyway. Did you know that creditors can raise your interest rate if you have been late on a different line of credit? Example: if you have paid on time every time with your Wells Fargo Visa but you're late on your JC Penney even once, Wells can raise your interest rate because your risk is higher. Talk about piling on! That's nuts. The whole system is nuts! What can you do? Well, don't take it in the shorts any more. Get off the debt treadmill and start over.
Settling your debt isn't the easiest thing in the world to do, though. It takes a commitment to finally see light of day. Know that at the end of it you're going to be debt free and with what you've learned through the process you're not going to let yourself get into that situation again. Real debt relief comes at the end of the process when you can lick your wounds and recover. The weight that is off your shoulders at that moment when your debt negotiator calls you to tell you they are finally done is incredible. Think about that for a second. What would it feel like for you to finally be out of debt? I kind of think back to those Lipton ice tea commercials of the 80's where the guy is holding a glass of ice tea and falls back into the pool. Refreshing? Eh...maybe more of a shock to the system. Let's try something better...how about a good nights sleep when you wake up on your own without the ringing alarm clock and you have nothing scheduled all day; you can just do what you want with no deadline. Ahhhh....there we go. I love a good night's sleep, don't you? |
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About Debt Settlement 