If you are drowning in debt, fortunately there are solutions available to consumers. One of the key solutions is known as a debt settlement program. While there is no such thing as a get out of debt free card, you do have options to improve your financial situation, including reducing the amount of credit card and medical debts due. While people should explore all options, debt settlement is one possibility that can help you start anew.
Debt settlement programs will work with your various creditors. As part of the process, a client will partner with a counselor and their creditors to agree upon a medical or credit card debt settlement that works for you. More and more creditors are trying to work with people so they can get some payments, rather than see someone go into bankruptcy and then the creditor will end up with nothing.
Using the debt settlement process and a company that offers the service, you can get all your debts reduced to a lower dollar amount. The programs are comprehensive, and can address medical and credit card debt, among other types. Many people have had luck at settling their obligations down to a small part of what was originally owed, and therefore you can get out of debt easier. There are many cases in which you can reduce the debt owed up to half of the balance or even more.
One of the primary differences between a debt settlement program and some of the various other debt relief options on the market is that the settlement process will allow you to payoff your unsecured bills at a reduced principal balance. Many people say they are even better than assistance programs being offered by credit card issuers.
So why are they sometimes better than counseling? This will allow you to get out of debt much faster than a standard credit counseling program that provides only reduced interest rates. While each plan and program is different, it is typical to see a debt settlement program that allows you to get out of debt within 12-36 months. It is considered a great alternative to filing for a Chapter 7 Bankruptcy as a Chapter 7 Bankruptcy filing will remain on your credit report for many years, usually 10 years, and can hurt you in the future with receiving new credit, buying a home or car, or even receiving a job.
There are many other pros to debt settlement. For example, a program can help an individual regain a sense of control over their finances and also clear up bad, outstanding debts. What often happens is that when a consumer becomes delinquent on a few bills, or a high interest bearing medical or credit card debt, the problem quickly grows and it can quickly gain speed and turn into the “snowball” affect.
If and when this occurs, the consumer will be faced with additional charges, late fees and countless other penalties. They will continue to build up on your account and hit the point in which the consumer can become overwhelmed. This is yet another benefit in which the support of a good debt settlement program can be implemented and can put you on the path to financial recovery.
Also, often times debt settlement programs, and the companies that offer them, will closely review and dispute any inaccurate information that may be posted on your credit report. This means that your credit scores and report will improve over time, and it is one less thing for a consumer to worry about. A debt settlement company will also closely notate each payment for every bill that you make to help ensure it is properly noted on your credit report. This documentation will also ensure a creditor can’t come back later and say that you never paid, or even try to refute the agreement you made.
Many times, after the debt settlement occurs and the debt and bills are paid off, the creditor will try to attempt to collect the balance of the previously outstanding account that was agreed to be forgiven. A creditor will attempt to do this. People aware of this, so that they need to require that you provide proof of the debts and bills that you paid off. Also, they try to ensure that the payment occurred within the agreed upon timeframe.
So another advantage of working with a debt settlement company is that it will help ensure that all payments that were made to creditors are documented properly. The documentation is key so that you are protected in case it does happen. If you do not have the means or resources to document the debt settlement agreement properly the creditor will come after you for the full, and/or previous outstanding balance on the account. It is not often easy to document everything properly and it can be a good idea to have debt settlement program for this reason alone.
When searching for a debt settlement program and company to use, a good plan will include the consumer in the settlement process. So any program you agree to needs to be transparent. The consumer wants to ensure that everything is fully documented and agreed to by them.
The company needs to establish a debt settlement program that is fit specifically for the individual persons needs and financial condition. You should be sure that they provide you with all possible pros, cons, and options so that you can come up with an informed decision on the various factors including what exact debts to include in your program. They should work closely with you so that you both decide on what is a realistic amount that you can afford to pay each and every month towards your debts and bills. Read about questions to ask a debt settlement company. Learn more.
There are still more pros and benefits to using a debt settlement program and using a company to help you deal with credit card and medical debt. They have the resources to stop those phone calls from collectors that make you tremble. They can also stop endless letters and warning that you receive in your mailbox daily. While it is difficult for a debt settlement program and company to stop an original creditor from calling you to attempt to collect on any bills or debts that they show are owed to them, the company can send a cease and desist letter to third party collection agencies. More ways to get help from debt collectors.
If you want to reduce and get out of debt, you need to take action. Often times people are too proud to ask for help. Do not let pride keep you away from contacting a great debt settlement company. Contact a company to learn more about debt settlement programs they offer and ask them for a consultation. Rely upon the top professionals to do the work so that you can be debt free.
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