Debt Settlement |
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Are you ready to become debt free?
Examples of unsecured debt you can WALK AWAY and settle:
How to qualify for debt settlement?
Please fill out the form below to find out about the plans you qualify for! Debt Settlement FAQ What is Debt Settlement? Debt settlement occurs when your lender consents to accept less money than you owe on your debt through negotiations between you and your lenders. When a new balance is agreed upon, you will no longer be required to pay back your full debt and will only be responsible to pay back the new balance. Depending on the agreements made, you may be required to pay back the debt in a lump sum or continue to make reduced monthly payments. What is the Process for Getting a Debt Settlement? You can attempt negotiations directly with your lender or hire a debt settlement company to handle the negotiations for you. If you decide to deal with your lender yourself, you must be aware that your lender is under no obligation to negotiate with you. If you decide to hire a debt settlement company to deal with your lender, they already have the knowledge and experience necessary to effectively negotiate with your lender. They already know what lenders are and aren’t willing to settle, as well as the conditions they are likely to agree to. Their lack of emotional involvement will ensure that the negotiating is efficient and objective. They will customize a plan to suit your personal financial situation to ensure you are able to pay off the settlement. What Type of Debt Will Debt Settlement Help? In most situations, only unsecured debts will meet the criteria for debt settlement. This is debt that is not backed by collateral, such as mortgages, automobile loans, or student loans. Examples of unsecured debt are credit card debt, medical bills, store cards, and personal or unsecured bank loans. The most common is credit card debt. The amount of debt that you owe to your lender can considerably effect your qualifying for debt settlement. The criteria are usually $10,000 or more in unsecured debt and that you are in a financial hardship but wish to avoid bankruptcy. What Are the Pros and Cons of Debt Settlement? Reduced payments or a reduction on your total debt balance is a significant benefit of debt settlement. Debt settlement can also help you to avoid bankruptcy. Your credit will be damaged with debt settlement, but less than it would be with bankruptcy. As well, the unpaid balance on your debt will be taxable income at your normal tax rate. But this cost will be considerably lower than your full debt balance. Are there Different Options than Debt Settlement? There are a few different options than debt settlement, depending on your specific financial circumstance. Debt consolidation will not reduce your total debt balance, but it can help reduce your monthly payments and interest rate, to allow you to continue making minimum payments. But many people who opt for debt consolidation use their credit cards to pay for the new debt, resulting in an increased total debt and compounding their financial problems. Bankruptcy can eliminate all of your debt but should be considered carefully. It will damage your credit, the process can cause a lot of trouble and can also cause you to feel embarrassed about your situation. Consumer Credit Counseling can help you create a feasible budget for your personal financial situation that will enable you to pay back your debt. A Consumer Credit Counselor may be able to help you lower your interest rate, but often times, they are funded by the creditors you are trying to pay back. They may not have your best interest in the forefront. To find out more or to sign up, please contact one of our Advocates today! |
