Business & Finance Debt

Debt Settlement Secrets - What Consumers Need to Know About Debt Settlement

Debt settlement can help you attain financial freedom from debt.
Those distressed with debt can now breathe a sigh of relief and end their pending debt.
Now the whole process is not as simple as it sounds.
You need to do a lot of research before you enjoy the benefits of debt relief.
Debt settlement is largely based on negotiation.
The borrower needs to negotiate with the lender to reduce or eliminate the total debt amount, however this process is very sensitive and success depends on skillfully handling it throughout its life cycle.
Consumers must understand the basic fact that creditors had a tough time facing the financial loss and would not easily settle for something less than the amount lent.
However the economic condition is poor on a large scale and has barely given a chance either to the creditor or to the debtor to regain balance of the financial domain.
Debtors can therefore capitalize the current economic state to get rid of their debt.
Not paying debt is definitely not an option.
Letting things continue as it is, to resort to foreclosure or bankruptcy in the end will make matters worse.
Credit lending institutions suffer more when the accounts are delinquent or homes seized for foreclosure.
An intermediate solution is settlement.
Stop making payments to the creditors, instead start saving it in an account.
Creditors will be curious to know the reason behind non payment; you can utilize this opportunity to start the negotiation and offer a lump some payment in return of reduced debt.
This payment is nothing but the amount you saved over a period of time.
Given the fact that your financial condition is unhealthy but you are still willing to pay off the debt, you can explain the same to the credit card companies and emphasize upon settlement and that failing to do so will lead to bankruptcy.
Creditors will avoid being a reason of your bankruptcy.
They would waive off the late payment fees, lower the interest rate and reduce the loan amount to help you make the payment.
Thus you can be debt free in less than 2-3 years if your debt is over $10000.

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