Debt Settlement and Debt Negotiations - Is it for you?
Debt Settlement : Is this for you?
If you presently find yourself with a huge debt burden, you do realize that you somehow have to resolve this situation. There are a few options that you have. Some are straightforward enough, but some require some explaining. So here are your options you can take.
1. Get a job that triples your present pay or win the lottery - It may be unrealistic for most, but for some lucky few, this could be just the ticket to pay off your debt without resorting to the other options below.
2. Bankruptcy - For some, this may be the smartest option. But for many, the stigma and the fact that this stays on your credit report for 10 years matters. Furthermore, bankruptcy is in the public records and requires you to appear in Federal Court. If you file for a chapter 13 bankruptcy, you may still have to pay your creditors a portion of what you owe them even after you have emerged from BK! Bankruptcy is most appropriate if you cannot even make payments either because of loss of job, medical condition (disclaimer: this is not legal and you are adviced to seek legal opinion).
3. Obtain a debt consolidation loan - This normally takes the form of a home equity line of credit (so essentially you need to have a home). With the latest financial crisis and loan losses suffered by banks, this is becoming a more difficult option than it was a couple of years ago. Furthermore, if you do a debt consolidation loan secured by your home, it puts you in an even more precarious situation because if you ever miss your payments again, there goes your home! This method will be suitable for some with sufficient equity in their homes, has a stable job and essentially can afford their interest payments but want to lower them.
4. Consumer Credit Counseling Services - This is usually a "non-profit" organization that is funded by contributors from various creditors (whose side are they on?). This is how it works. The consumer credit counseling service will usually get you a lower rate from your creditors. You will have to pay them a monthly payment, which they will disburse to your creditors. Your monthly payment will include a fee to them (for negotiating a lower rate for you).
The advantage of going this route is that your monthly payments will be lower. This disadvantage is that your debt burden is not reduced. This will only work if the new monthly payments are lower than your existing payment (including the fee). If all you have is credit card debt, you should first actually try to call the credit card companies yourself to try to get a lower rate.
5. Debt Settlement for less than the full balance - If done correctly and under the right circumstances, the majority of creditors will settle for less than the full balance. Debt negotiation will work for those who are in a situation of heavy debt burden, but will actually do just fine if that burden is reduced.
Since debt negotiation is my specialty, let's go over this in more details.
Debt negotiation is not for everyone. It is most suitable for those people whom just a reduction in their debt load would put them back on a stable financial footing. If you are too deeply in debt, have lost your job and have no savings, bankruptcy may be the only option for you.
Debt negotiation is only available for unsecured debt. That means things like credit card debt, medical bills, department store credit cards. There is really not much you can do with debt that is secured like your mortgage (backed by your home), student loans (which you cannot get rid of even in a bankruptcy), alimony and child support (mandated by the courts), although these days, you may just try to negotiate your mortgage with your bank. Depending on the creditors, it is possible to settle as low as $0.35 on the dollar though some will accept about $0.60.
Off course you can. But before you do so, there are some vital things you have to know before you go DIY.
There are two ways to do this. You could settle your debt for a lower principle and pay it off over 2 to 4 years. Alternatively, you could settle your debt and pay it off immediately once you agree to the settled amount. This process usually takes a few months. If you can afford a lump sum settlement, we can negotiate terms for you so that your credit will not be affected.
Debt Negotiation is NOT for everyone. Rather than painting a beautiful picture, I'd rather give you both the good and the bad and explain some of the issues you may face if you decide to go this route.
So let's get to the chase. Why do people use us instead of doing it themselves or using other firms? Well, for several good reasons.
I hope you have found this information helpful for yourself. I have given you an outline of the various choices you have if you are deep in debt (especially unsecured debt). You have various choices as we have outlined above. Debt negotiation is not for everyone. For whatever the solution is for you, you have to take action. If you do nothing, your circumstances will not change. If you do something about your situation, then you could potentially
Remember, only you can decide your future. I hope you have found this information useful. If you decide to engage in my services, all you have to do is just to fill out the form below. There are a couple of requirements for us to work with you. Firstly, your unsecured debt must be at least $15,000. After going through your situation, you must be in a position to service the new reduced debt. If we feel you should consider bankruptcy, we will advice you to consult a bankruptcy attorney.
Either myself or one of my associates will call you and talk to you about your problems and hopefully, help you out.