Debt Settlement
Wanna reduce the time you spend in debt? Wanna pay back 40-60% less than what you owe? Can you access a large sum of money in a hurry? Then a debt settlement program might be ideal for you. Here's how a debt settlement service works, and how it can work for you.
How Debt Settlement Works
When you enroll in a debt settlement program, a debt settlement professional who is skilled at the art of negotiation will contact your creditors to get them to reduce your balances to a much, much lower amount. In return, you pay the new amount off immediately. (Some debt settlement companies will give you anywhere from 1-3 years to pay it off. It just depends on your situation and how fast you can access that much cash.) For example, let's say you owe $10,000 in unsecured debt, and a skilled debt settlement negotiator gets your creditors to agree to considering your accounts settled if you pay $5,000. This is basic math, but as you can see, you'd save $5,000. Amazing. The drawback of debt settlement (other than needing to access a lot of cash quickly) is that it does leave a small ding on your credit report. A debt settlement program is not as bad as bankruptcy though.
Other Options
If you'd like to enjoy those same reductions, but you can't come up with the cash you need so fast, maybe a debt consolidation program would be a better way for you to go. With this type of plan, a debt management professional will contact your creditors for you to get drastic reductions in balances and interest rates. Then the new, lower amounts are combined into one, and you make one monthly payment to the debt management company instead of several monthly payments to your creditors. You could be debt free in as little as five years under this type of plan.
If you think debt settlement services are right for you, check out our Related Resources page to find a company to handle it for you. There are so many debt settlement programs to choose from - you have the advantage. Shop around and find the debt settlement company that you feel comfortable with.
All material copyright © 2008 Debt Teacher. All rights reserved.
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