Personal Debt Settlement Plans - Fast Way To Eliminate Bad Debt
Personal Debt Settlement Plans - Fast Way To Eliminate Bad Debt
If you are swimming in debt, the best alternative solution is not bankruptcy.
In the past, this was the only option for people who were experiencing difficulty paying their bills. While it clears up delinquent bills, bankruptcy will also ruin your credit.
Aurora Lillo Editor of the "Best Debt Settlement Services" website -- http://www.BestDebtSettlementServices.com -- pointed out;
"...After filing bankruptcy, you will not be able to get credit for seven to ten years. This is suggested only in extreme cases..."
If you want a faster, easier way to clear up delinquent bills the alternative is debt settlement. This is not a loan program but a process that will help to lower the amount of money you owe and help you pay off your bills in twenty four to forty eight months. In some cases, it may take closer to thirty-six months but it is a better option in the end.
What is it?
Creditors know that if a person declares bankruptcy, the will not collect on those accounts so they are often willing to settle for a lower amount in order to collect the money and close the accounts.
Personal debt settlement plans help to reduce the amount of the debt by up to fifty percent. Financial counselors work with you and the creditors to work out a payment plan to eliminate those overdue bills. This is especially good for credit card bills. A payment plan saves the consumer money and the creditors can settle unpaid accounts that might otherwise be charged off.
How does it work?
Debt Settlement is the term used for negotiating a payment arraignment with creditors for a fraction of what was originally owed. Once this agreement has been accepted the harassing phone calls and letters demanding payment will stop. The company will work out a payment plan and their fees will be calculated into the budgeted amount. They work with you to pay your bills and clear up your financial standing. It is less stressful knowing that you have a professional working out the details.
"...The process requires having al of your bill statements and bank records. The company will need to see how much you can afford to pay each month and may be able to work out a lower payment if they can prove to the creditor that you are in financial hardship. Most often creditors would rather let you pay what you can than have to take you to court, which will cost them a lot more..." added A. Lillo.