Posts Tagged ‘debt settlement’

Debt Settlement vs Bankruptcy

Debt settlement  Why should you consider it before bankruptcy?

Debt is major concern for one and all given the present economic scenario. However, the pertinent question that remains is what the major steps that can be taken in the face of debt to erase it altogether are. This is amongst those financial considerations that need to be contemplated seriously while taking into consideration various other factors. Now, talking about erasing debt, you’re sure to be wondering whether or not it’s really possible to “erase debt”. Well, this is again a frequently debated question too. If you’re practically over your head in debt so much so that you’re unable to pay your bills and getting harassed by collection calls, then it’s definitely time that you took things seriously.

Debt Programs – Have They Worked For You?

 

There are pros and cons to enrolling in a debt reduction program.  That includes debt settlement, debt consolidation and credit counseling.

I want to know if you (or anyone you know) have ever signed up for any of these programs and if so did it help you get out of debt?

You can leave a comment to let us and everyone else know.


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.