Lower your monthly payments
Reduce credit card interest rates
Waive late fees
Reduce collection calls
Have only one monthly payment
Debt settlement is defined, the procedure whereby a creditor is paid part of his payment by his debtor(s). Conclusion on this part payment (settlement) is often reached after an elongated process.
Debt settlement involves a lengthy negotiation process. The negotiation happens between the settlement companies and creditors after the debtors have saved a specific amount in the trust account managed by an independent party. The experienced negotiators contact creditors and request them to accept an amount which is only a small portion of the total outstanding debt. Once the creditors accept the proposal of the negotiators, a written agreement is finalized and signed by the concerned parties.
Settle your unsecured debts fast
Pay less than what you owe
Save money 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.
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.
Note: If you do not wish to bargain and reduce the amount you are owing, you can chat with your creditors and try out a hardship plan. Otherwise, you can enroll into a debt consolidation program or a debt reduction plan to pay back your creditors. If none of the options work out for you, then consider paying back your creditors through a court-monitored repayment plan. Ask licensed Credit Counsellor from Credence Credit for more information.