Many Americans are currently struggling with large amounts of debt and looking for answers. The good news is that there are several options for eliminating debt today, but finding the best one for your situation can be difficult. Perhaps you have heard of a newer process to eliminate debt called debt settlement. It involves negotiating to reduce the balances of your accounts and eventually settle your account. If you are looking into debt settlement we are here to help. Here’s how the process works:
- Find and hire a debt settlement company – This can be done through online research or simply word of mouth. Find a reputable company that has reviews and has been handling debt settlement for a while. Before hiring one company sit down with several to ensure that you are choosing the best one for your situation. The majority of these companies offer free initial consultations.
Discuss your situation and make a plan – Once you have hired a debt settlement company you will provide them with information regarding your income as well as your debt. This will include amounts, lender names, and in some cases account numbers. With this information the debt settlement company will be able to estimate how much they will be able to reduce your debt by as well as how long the process will take.
- Begin depositing your monthly payment – The debt settlement company will open up a savings account in your name that you will deposit an agreed upon amount into each month. The amount you deposit will be based upon your current income and expenses. In other words, you will not be required to deposit an amount each month that you cannot afford.
- Negotiation begins – Once the balance of your new savings account reaches a certain amount, the debt settlement company will begin negotiations with your creditors. They will use the money that you have saved to show the creditors that you will be able to pay them the settled amount. In many cases the negotiations are extremely successful because creditors know that it is better to receive some money rather than none.
- Settlement occurs – Once your creditors agree on a negotiated amount payments will be disbursed and your account will be marked as “settled.” This will be reflected on your credit report and you will finally be free of that particular debt. You will no longer receive calls, letters, or any communication from that creditor.
Debt settlement is a process that thousands of people have utilized to eliminate their debt. It is an alternative to filing bankruptcy and does not require an attorney or a court date. If you have filed bankruptcy within the last 8 years and are not eligible to file again for some time debt settlement may be a good option for you. If this process sounds like it could work for you, contact a debt settlement company in your area today!