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With proper help you can

 Lower your monthly payments

 Reduce credit card interest rates

 Waive late fees

 Reduce collection calls

 Avoid bankruptcy

 Have only one monthly payment


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Debt settlement helps you repay bills fast

Debt settlement is best when you:

 Could not make payments for past 3 months
 Cannot repay your outstanding dues
 Do not want your creditors to file lawsuits
 Want to pay back your creditors
 Want to prevent your accounts from being assigned to collection agencies

What is debt settlement and how does it help?

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.

Debt settlement helps you:

Settle your unsecured debts fast

 Pay less than what you owe

Save money and avoid bankruptcy

Reduce annoying collection calls

How much
debt settlement
can save you

How a settlement company helps you in settling your debts

Monthly payable amount

The settlement company analyzes your financial condition and decides upon a monthly payment, which you need to pay to the company every month.

Settlement negotiation

It negotiates with all your creditors to reduce the payoff amount to some extent.

Get rid of one debt

Once the creditors agree on a reduced payoff amount, the company makes the payment, and you get rid of the specific debt.

Settle multiple debts

Thus, you clear all your credit card debts one after another with the help of debt settlement companies.

When to Meet With a Settlement Company

    Settlement companies are not to be contacted just because you have not paid up your; payday loans, departmental store cards, credit cards debt, etc. The appropriate situations that require the intervention of settlements companies are stated below:
  • 1If you have not been able to pay up their debts in 90 days

  • 2 If you envisage you cannot pay up your loans all alone.

  • 3 If you wish to pay back or negotiate a settlement to your creditors

  • 4 If you do not want your creditors stop collection calls threatening you

  • 5 If you are scared that your creditors might file a complaint against you

Pros and cons of debt settlement

Pros:

  • A You can save money through settlement
  • B Affordable single monthly payment
  • C You can get your financial life back in order

Cons:

  • A The negative item will stay on your credit report for 7 years
  • B Your credit score may get reduced to some extent
  • C You may have to pay a tax on the forgiven debt amount

Do's and dont's of settlement

Do's

  • A Organize paperwork when you decide to opt for settlement
  • B Be proactive and contact your creditors when you face difficulty in managing any of your debt
  • C Always finalize through written communication and you can take help of debt settlement letters available online

Don'ts

  • A Don’t overlook the effect of settlement while deciding which debt relief option to go for
  • B Don’t opt for a settlement program without shopping around and comparing various debt settlement USA companies

Who should go for debt settlement programs?

Debt settlement programs are a viable option for the people who have various types of unsecured debts such as:

  Medical debts

   Credit card debts

   Collection accounts

   Unsecured loans

   Personal loans

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.