Debt Settlement Companies – How To Eliminate The Most Debt
Debt Settlement Companies How To Eliminate The Most Debt
American consumers are deep in debt. Many are so deep in credit card debt that they can no longer make even minimum payments, and are seeking relief in droves. The debt resolution and relief business is a big one these days, and there are many options on the market. The wise consumer looks at all the options and considers the credentials and services that debt settlement companies offer.
Debt settlement companies are not the solution for everyone. The programs they offer are specific, and provide ways that can eliminate debt but falls in between debt consolidation and bankruptcy. It is a program for consumers who have a steady stream of income but who have become too mired in debt to work their way out of it alone. When a consumer turns to debt settlement, the services they receive are two fold. The settlement service has them set up an account to which they will pay a monthly amount. This fund is insured and money is added to it until which time the settlement company can begin negotiation with creditors. By having a fund already established, it allows the negotiators to have a starting point.
Most creditors are quick to renegotiate unsecured loan amounts. The reason being that if a consumer declares bankruptcy, they are unlikely to receive any payback, and with debt settlement, they are ensured of receiving any where from 50% or more. This works for both the consumer and the creditor. The consumer is relieved of a number of monthly bill payments, and makes one payment into the fund managed by the debt settlement company. Collection tactics cease as the creditors are satisfied that the debts are being dealt with.
The real beauty of debt settlement is that the consumer is able to pay off all renegotiated debt in from 12 to 36 months of beginning a program. It is true that credit rating may suffer some, but the reality is that if a number of payments have been missed prior to starting debt settlement, it probably won't get any worse than what it already is. Besides, the consumer can start to rebuild a good rating sooner than with either bankruptcy or even debt consolidation programs.
Debt settlement is a very workable solution for many consumers, and it has helped millions to get out of debt. Working through a program like this requires diligence, but it does show that there is light at the end of the financial tunnel.
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