Unsecured Debt - How To Take Advantage Of The Market And Eliminate Unsecured Debt
What does unsecured debt mean?
What does unsecured debt mean?
An unsecured debt refers to any type of debt or financial obligation that is not backed up by an asset like a property or a car. In other words, you offered no guarantee when you contracted the debt, so the creditor has only to you look to for paying the debt.
In the context of the current economic crisis, the American Government launched a series of governmental programs destined to help people settle their debts for a smaller amount of money than they had to initially pay. The companies have received high amounts of stimulus money from the government to be able to cover their losses; therefore they can afford these negotiations.
There are several ways you can take advantage of the market and eliminate a significant fraction of your unsecured debt:
- The debt settlement means that you can settle your debt directly with your creditor for 40-50% of what you actually owe. You can do this directly, if you're an experimented negotiator and have enough knowledge of this process, or indirectly, hiring a debt settlement company;
- The bill negotiation program means that you can stop making payments to your creditors and during this time the bill negotiation company that you previously hired will take monthly payments from you and store them into a holding account or has you store the money into your own account. During this process of savings, the bill negotiation company is handling the discussions with your creditors, trying to obtain a lower payoff amount;
- The payday loan consolidation applies when you are unable to repay a payday cash advance on time. In this case you must approach a debt management company that will offer you a payday loan service. This company will negotiate with your creditor over a consolidated repayment amount which is advantageous to you.
It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified. They are free to use and offer helpful debt relief advice.