subject: Debt Settlement Program [print this page] When times are tough and the money just isn't covering creditors, many consumers think about bankruptcy. But, as most also know, it is a dangerous and long road to recovering from massive financial problems. There's a solution standing between solvency and bankruptcy, and that's a debt settlement program.
A debt settlement program is a good plan for those with a steady stream of income, but whose debts have overtaken them. Working with a debt resolution company, it is a solid method of getting creditors to stay back, and allow the consumer to work through until the outstanding loans are resolved.
The way debt relief companies work is to work with both parties to put some plans into place. First, the consumer starts to put money into an insured account. When the money starts to amass, negotiators go to work to reduce the amount of the principle debt with the creditors. Creditors are willing to listen to such offers because they stand to see some return on their loan whereas if a bankruptcy is declared, they may see nothing at all. Generally, they'll agree to reduce loans up to fifty percent, and that can be of enormous help to the consumer. Paying off half of what was originally owed gives a person hope that there's light at the end of the tunnel.
By continuing to pay into the debt settlement account on a monthly basis, and by having the total debt reduced, it is perfectly possible to be debt free in twelve to thirty six months. Yes, debt settlement companies charge for the service, but they provide a valuable service too. Bankruptcy legal fees are not free, and a consolidation loan can tie up property by having a lien against it for years. In debt settlement, the consumer gets genuine value from professional negotiators to advocacy in the case of creditor collectors. A client is backed up 100%.
A debt settlement program isn't for every consumer. There are qualifications and circumstances that must fit the application of it, but with research a consumer can easily find out if it can work for them, and owe it to themselves to compare what debt consolidation and bankruptcy offer when looked at against debt settlement. To be free of debt, liens and extra mortgages is an option that any person should consider.
Debt settlement is just one alternative to bankruptcy.
by: Vicki Hall
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