Debt Settlement – It Is Not Easy To Settle Your Debt On Your Own

Debt Settlement It Is Not Easy To Settle Your Debt On Your Own

When opting for debt settlement, the first question that comes to your mind is whether to undertake the negotiations yourself or to hire a debt settlement company. Some people may want to save money by negotiating the debt themselves. This is possible but very difficult. Creditors do not consider settlement unless you are behind on your payments for 12-16 weeks. During this time the collection calls in themselves are enough to unnerve the common debtor. Once the creditors agree to settlement, you will have to negotiate different debts with different creditors at the same time. This can be quite confusing and stressful.

At the same time you will have to read up on a lot of laws pertaining to debt settlement. You will also have to educate yourself about your rights as a debtor. This can be quite time consuming especially if you are not sure where to look for the information. If you are not aware of the basic laws and your rights during a negotiation, it is likely that you will be handed the short end of the stick. As a general rule if a debt settlement company negotiates a debt, the debtor usually gets a better deal than he/she would negotiating on his/her own. At the same time a debt settlement company will be completely aware of the all the debt settlement laws and it wont be possible for a creditor to get the better of them.

Once you have hired a debt settlement company you do not have to deal with the creditors at all. Even your collection calls will be directed to the settlement company's office. At the same time the latest debt settlement laws state that a settlement company cannot demand an upfront fee. A debtor is required to pay the settlement company only after the settlement procedure is over and the debtor has recieved a letter of full and final settlement. Even this fee amount cannot be more than 13% of the amount saved by the settlement company during negotiations. Hence it is in the settlement company's own interest to get the best possible deal for the debtor.

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