Archive for the ‘Debt Settlement’ Category

Can Debt Settlement Reduce Debt by 40% or More?

Debt settlement is a process where your outstanding debts are eliminated through negotiation with your creditors. You are required to pay only a portion of what you originally owed your lender.

So why will your creditors agree to settle your loan at a reduce amount? Because they are protecting their investment. If you were to file for bankruptcy, they stand a chance of not collecting a dime from you. By settling with you, they can at lease get some of what they are owed. When debt settlement companies get involved, the creditor has less to worry about. They know that you want to repay your debt even if it’s not the full amount. They also save on collection agency and collection attorney charges which may be as high as 40% of the funds recovered.

Debt Settlement Can Reduce Balances But…

Credit card debt is a major problem these days and medical debt is one of the major causes of personal bankruptcy. Many are at wits end, worrying about debt they cannot pay and many are looking at debt settlement as a solution to reducing that debt.

Debt settlement is a process where your outstanding debts are greatly reduced and you are required to pay only a portion of what you originally owed your lender. You could settle up to 40% – 50% of what is owed.

Debt settlement can have you debt free in a 12-36 months compared to years of paying high interest balances.

Debt Settlement Companies and The Better Internet Bureau. WHAT?

I have seen a few “Debt Settlement” web sites that display a “Better Internet Bureau” Icon.  What exactly is that?  Well if you click the icon nothing happens. After doing a little more digging I found that an internet marketing company seems to be the one that came up with the idea as a way of promoting web sites. 

The icon looks a lot like the Better Business Bureau icon.  Are these debt settlement sites trying to deceive potential clients?  At this point I don’t see any real value in this service. Correct me if I am wrong.