Lower your monthly payments
Reduce credit card interest rates
Waive late fees
Reduce collection calls
Have only one monthly payment
Debt settlement is a process where you pay less than your outstanding dues. Here, a debt settlement company or you negotiate with your creditors to cut down the outstanding balance. If your creditors don’t give a nod to the debt settlement agreement, then you can threaten to file bankruptcy. And, this trick might work for you since creditors would want to recover as much as possible.
Settle your credit card debts fast
Pay less than what you owe
Save dollars and avoid bankruptcy
Reduce annoying collection calls
The settlement company analyzes your financial condition and decides upon a monthly payment, which you need to pay to the company every month.
It negotiates with all your creditors to reduce the payoff amount to some extent.
Once the creditors agree on a reduced payoff amount, the company makes the payment, and you get rid of the specific debt.
Thus, you clear all your credit card debts one after another with the help of debt settlement companies.
Make sure the debt settlement program complies with BBB (Better Business Bureau) standards
How long the business has been operating
The number and nature of complaints against the company
Any licensing or government actions against the organization
Transparency of the business
It is better if you choose a settlement company that has BBB accreditation. However, if you cannot find one, you can approach a law firm.
Know about some reliable companies or law firms where you can approach.
|Settling debts on your own||Settling debts with professional help|
|Negotiation||You need to decide how much you can pay every month||The settlement company analyzes your financial condition and decides upon an affordable payment|
|Mode of payment||Usually you need to make one-time payment towards each of your accounts||You need to pay an agreed upon amount to the settlement company every month|
|Fees||You don’t have to pay anything other than the settlement amount to the creditors||You need to pay a certain amount as professional fees|
|How to decide||You want to save more money, but you should have proper negotiation skills to convince your creditors to agree to settlement||You want complete professional guidance to settle your debts, though you’ll have to pay a fee for the services provided|
After that, you'll need a letter of acceptance of the verbal offer. Finally, you'll need a proper debt settlement agreement letter. You can take a print out of debt settlement letters from here.
Debt settlement programs are a viable option for the people who have various types of unsecured debts such as:
Credit card debts
Secondly, most creditors would not accept a debt settlement agreement letter unless you’re suffering from genuine financial hardship. Usually, financial hardship happens due to job loss, overspending, death of a spouse, etc.
Debt settlement programs would work only when you can’t pay off debts yourself. You’re less likely to be eligible for a debt settlement program if it isn’t the case.