subject: Debt Settlement - How to Realistically Get Out of Debt With a Proven Settlement Process [print this page] Of late, many debt settlement programs have flooded the market. This has left the consumer in a state of confusion as to which settlement program works best. It is difficult to understand the dynamics of how settlements work, unless one has a keen eye on the current state of affairs and is open to learn more about it. Fraudulent programs have increased in number leaving many consumers in the dark. It is only at the far end of the settlement process does one come to know that the investment they have made to come out of debt miseries, have gone waste.
For a settlement program to work, the person/party approaching the creditor must have done some ground work in terms of the financial condition of the debtor. This can be done by directly contacting the creditor, presenting your financial status, which includes your current debt liability, your current income, some projections about how the fund flow will be in the near future and other supporting documents. You must be able to present a strong case to your banker which will make him think that you are really a genuine candidate to whom a settlement discount can be offered.
What I mean by settlement discount is that the creditor will be prepared to slash a huge portion of the unsecured debt, thus reducing your net dollar amount due. This will put you in a very good situation, as you will be paying say half of what was required to be paid. For this to work, the creditor has to be convinced that you really are in such a situation that it would be best to give you a debt relief and claim back at least some portion of his money.
To do this all on your own would be quite a task. The probability of getting a discount when you decide to go for settlement is greater if you are represented by a settlement firm. You will interact with your representative and he would in turn talk to the creditor after preparing a strong case that is most surely to win. Trying to know everything about how to deal with a creditor would require you to become an expert of this complex process. Invest your time in higher dollar-per-hour activities and leave this to the experts. They will ensure that you are undisturbed and relaxed.
For the millions of Americans who are at least $10 k in unsecured debt, it would be financially prudent to consider the debt settlement option. Creditors are very worried about collecting their debts and legitimate debt settlement companies know exactly what methods to use to get your creditors to agree to eliminate a certain percentage of your unsecured debt.
Debt Settlement - How to Realistically Get Out of Debt With a Proven Settlement Process
By: coleman stump
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