Steps For Using Debt Settlement To Eliminate Your Debt
Debt settlement can get you out of debt more quickly than most other debt relief alternatives
, but it has consequences and should be considered only as an alternative to bankruptcy. At the current time, debt negotiation services are quite popular and they are spending a lot of money on advertising. They do not go out of their way to let you know about the disadvantages associated with using their services. Follow these steps for negotiating your debts on your own.
1. Contact the lender and let them know you want to settle your debt and offer them what you can afford to send them on that day. If you are not several months past due, the lender is probably going to turn you down. Do not give up and do not avoid their calls. They will eventually settle with you, but it may take a number of months until they do.
2. Get all payment agreements in writing and be prepared to make payment at the time the settlement amount is agreed upon. It is essential to get a "release of debt" form and a receipt. You want to make sure these documents are kept in a safe place. The chances are good that this will not be the last time that someone will try to collect on this debt.
3. Request that the lender report your debt as "paid in full" rather than "settled for a lesser amount". This will have less of a negative impact on your credit rating.
4. Do not be drawn in by promises made be debt settlement services. They are expensive and you will pay them a lot of money before they even begin to settle your debts.
Debt settlement is a debt relief option that should be used only as a last resort. If there is any other way, that should be considered before debt settlement or bankruptcy. If you have debt, you should begin researching debt relief options today.