Are you struggling financially and looking for options? Maybe a debt settlement can help you! Put simply, debt settlement is a process in which individuals can hire a debt settlement company to negotiate directly with their creditors in order to lower monthly payments and reduce interest. Once a new balance has been established the consumer takes the time to pay it off and the debt is marked as “paid” even though only a portion of the balance was paid. This is truly a win-win for the consumer: not only do you become debt free, but more importantly you paid less to do it!
Once you have hired a debt settlement company they will open a bank account in your name that you will begin depositing money into each month. The amount you put into the account and the length of that process will be decided by you and your debt settlement company. Once the account has reached the amount agreed upon the debt settlement company will begin paying on the new balances that they negotiated. This is why debt settlement is also referred to as debt negotiation. If you are interested in learning more about what debt settlement can do for you just fill out our online application or call our toll free number to talk to a representative for a free consultation!
Is There Such a Thing as Credit Card Debt Settlement?
Technically, yes although you may not find it called “credit card debt settlement.” The truth is that credit card debt is the reason for most debt settlements in America. As of November 2012 the average American household had over $7,000 in credit card debt, and this number continues to increase. When credit card debt begins looming over you and you don’t feel like there is a way out it is probably time to consider your options.
By choosing debt settlement your credit card debt can be reduced by anywhere from 30%-60% depending on your debt settlement company, your specific creditors, and how much you owe. Call our toll free number for a free consultation with one of our representatives to see how much your debt can be reduced. Credit card debt may be the most common type of debt in America but it isn’t the only type that debt settlement can help resolve. Other types of debt that can be included in a debt settlement are: personal loans, utility bills, cell phone bills, medical debt, and apartment leases.
How Do I Find the Best Debt Settlement Company?
Only you will be able to decide on the best settlement company to help with your specific situation but you should take your time in doing so. Remember that the settlement company you choose will be working for you for an extended period of time so you will want to make sure you can trust them. Ask friends or family for advice on who to choose, meet with several different companies, and don’t forget to ask plenty of questions. Already have some questions in mind? Just call our toll free number for a free consultation with one of our representatives.
There are also be some red flags you should look for when searching for a debt settlement company. Because your creditors are not legally obligated to agree with any negotiations you should be wary of debt settlement companies that “guarantee” results for you. You may also be cautious of any debt settlement company that does not discuss the payment timeline with you. Discussion and approval of the payment timeline is knowledge that you, as the debtor, have the right to in this situation.
Debt Settlement Companies and Their Typical Process
Although there are thousands of different debt settlement companies, they all tend to utilize the same general process. First they will help you total up the debt that you want to settle, whether it be credit card, medical debt or other types. Next they will estimate the amount you will pay into your debt settlement bank account each month and how long that will take. Again, these decisions are not out of your hands, you will work with your settlement company to agree upon something that works for you. After the payment arrangements have been decided the settlement bank account will be open and your payment plan will begin.
Throughout your payment plan the communication with your debt settlement company should continue. The settlement company will be available for questions you may have or to aid with any issue that may arise.
Myths about Debt Settlement Programs
Just like many “debt relief” programs available today, debt settlement gets a pretty bad reputation, but it isn’t all true. One myth is that debt settlement programs will ruin your credit forever. In reality most individuals who are considering debt settlement or any other form of debt relief most likely have credit reports that are already less than perfect so the reduction of and paying off of any debt will be a step in the right direction. If your credit is a true worry then don’t hesitate to ask both your debt negotiation company as well as your creditors how the program will reflect on your credit report.
Debt Settlement vs. Debt Consolidation
Perhaps you have heard of another form of debt relief known as debt consolidation or credit card debt negotiation. Debt consolidation programs are another popular way that Americans are choosing to get out of debt, but it is slightly different than debt settlement. In a debt consolidation the individual will typically take out a debt consolidation loan (normally against their assets) in order to pay of smaller debts that they are struggling with. Therefore they are “consolidating” their debts to just one payment a month. Sometimes a debt consolidation company actually acts as the lender that provides the loan to the debtor and will be the entity that pays off their existing debt.
If we can help answer any of your questions regarding debt settlement and how it can aid your financial struggle please don’t hesitate to fill out our online intake form or call one of our representatives today!
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