Looking to find out more information about debt settlement? Maybe it’s the debt eliminating service that can finally work for you! Debt settlement is a process in which a company negotiates with your creditors for you in order to reduce your total balances and monthly payments. It is a process that has helped thousands of people become debt free. Here are a few facts:
- Significantly lowers monthly payment – Frequently, the debt negotiators you hire can save you 40% to 60% of what you owe (results vary widely, however). You then only have to pay the new, agreed-upon sum. In most cases this new amount is paid in a lump sum payment with money that you and your debt settlement team have set aside for just this purpose.
Lowest cost to get out debt, while avoiding bankruptcy – If you are using debt settlement in an effort to avoid filing Chapter 7 or Chapter 13 bankruptcy then you probably already known that settling the debt is a much less harsh option. Although your credit will be hit, it won’t be nearly as bad as it would be if you were to file a bankruptcy.
- Speeds up the time to debt freedom – When you sit down to sign the agreement with your debt settlement company they will give you a timeline based upon your current income and debt on how long they believe it will take for you to become debt free. This timeline is typically faster than a bankruptcy or any other type of debt elimination program.
- No upfront fees – Debt settlement companies are not allowed to charge upfront fees. In most cases the fees will be discussed with you before you sign the contract, but the company won’t expect payment from you for any account they settle until after the settlement is finalized. The fees for the settlement will vary depending on the amount of debt and number of lenders that you have. Just like with any legal process, more work calls for more fees.
- Not all debts can be settled – There are some types of debt that are not eligible to be reduced by a debt settlement. Some of these debts include student loans, child support, alimony, back taxes, or any other government debt such as parking tickets or even library fines. Even the best negotiator can’t convince the government to reduce a debt.
Do these facts describe a program you think could potentially help your debt issues? There is no harm in discussing it further with a professional. Call some local debt settlement companies and request a free consultation. Ask them what they could potentially do for your situation, and decide whether or not you think it would be to your benefit.