Normally, there are two types of debts one is secured and the other is the unsecured debt. In secured loan, we put some property as a security which makes the loan secure. An unsecured loan is taken without any security deposit. In this loan, the lender takes more risk as compared to the secured one. That is why its interest rate is more than other loans. Unsecured debt can include credit card, medical bills etc. a debtor has to manage all his payments. He has to calculate respective portions of loan and has to make the payments. It is very difficult task to do so. You might have high accumulated loan but as a single entity, it can be small. So you need to settle your debts but you will not get the settlement easily because each lender needs small amount.
While a debtor has to pay much more, he will not get any elimination. There is one solution to tackle this problem. This is consolidation of debts. You need to hire a professional and well-seasoned attorney. He will help you in accumulating all your bills. Then the customer has to make only one payment. It is not a difficult thing to do. First of all, a customer will hire a lawyer then the lawyer will ask about the bills and his financial status. Remember, according to the new FTC laws, settlement companies are not allowed to take any upfront fees from customers. So don’t give them any money unless they actually make a settlement deal with your creditor and you are satisfied with the offer.
So, accumulated debts will force lenders to think about elimination. This is because as a single entity, it looks easy to pay but when they will know that you have other debts to pay then it will go all in your favor. This way you don’t have to calculate payments and send them the money separately. You will do one payment and rest of things will be handled by your lawyer. This is a very handy option. Elimination through consolidation is the best credit management procedure. Try to get assistance of only legal and legitimate lawyers and don’t pay anything unless he is done with the creditor.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.