Will Debt Settlement Really Erase My Debts?
Will Debt Settlement Really Erase My Debts?
When someone is considering debt settlements, there are many things that they have to factor in.
Many people may consider this option by themselves while others hire a professional financial company. Those who hire a professional company may have the misunderstanding that the company can completely erase your debts.
Aurora Lillo Editor of the "Best Debt Relief Programs" website -- http://www.BestDebtReliefPrograms.net -- pointed out;
"...It is important to understand that this type of negotiation cannot do this. However, it can allow you to save money and lower your debt amount by up to seventy percent. This is extremely helpful for some people. It is especially true for those who are unable to make their minimum monthly payment..."
Debt settlement involves the act of negotiating and agreeing on a reduced balance with your creditor. Your creditors will not negotiate a reduced monthly payment, and they will only accept this type of offer with an unsecured debt. Additionally, that reduced balance has to be paid all at once. This means you only have only two options. If you do not have the money needed to pay the sum at once, you can build up enough funds over a period. If you already have the funds, you have nothing to worry about.
Many different pros and cons go with debt settlement. Although many people condemn it for the cons of the decision, there is no denying the fact that it has saved many people from bankruptcy.
The pros of this financial decision include the ability to pay off your debt for less than what you owe. You can save anywhere from forty percent to sixty percent. This is certainly an attractive quality. You will also get to enjoy the joys of getting out of debt faster. For example, it would take around ten years to get out of a ten thousand dollar debt by paying the minimum balance. With negotiation, it will only take you around two years. Another major plus is the fact that you get to avoid bankruptcy.
"...Although all of these factors are good things, it is important to understand that this is only meant for those who are facing bankruptcy. This is because debt settlement will lower your credit score. Creditors will not consider debt settlement until you are not paying your bills on time. If you have been doing so, you will need to completely stop payment for a few months. Additionally, you will need to pay taxes on the money that you save. This is because it is considered as a source of income..." added A. Lillo.
Further Information By Visiting; http://www.BestDebtReliefPrograms.net
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