Wondering how to get rid of your outstanding debts? Looking for ways and means of avoiding bankruptcy. Bankruptcy definitely should be the last option to think off when trying to get out of debt. Going bankrupt is not an easy way out. It has a drastic effect on debtors’ credit ratings. Not to mention the social stigma that a person has to face.
Debt settlement or Debt negotiations are the tried and tested methods of getting debts paid off in a short period of time. Ever felt that in spite of making monthly payments towards credit card bills, there is very little change in the outstanding amount owed by you. The creditors have a statutory right to claim interest on late payment, as well as a contractual right to claim interest if your terms and conditions of payment allow. In short you are losing thousands of dollars in interest to the banks with no end in sight.
Approaching a Debt Settlement Company to take over the responsibility of settling your debts is a good idea. They will collect all the necessary information from you and will prepare a credit report which shows how the customer has been handling his finance and the dues that are there in his accounts which needs to be paid off immediately.
The company sets up a meeting with all the creditors of the customer and informs them that the customer is not doing too well financially. He needs help in settling his accounts. In case he does not get the required help he is contemplating bankruptcy. The creditors would not get any money in case of bankruptcy. So, they show their co-operation in settling the customer’s account.
The customer is in a win-win situation now as the creditors are under pressure to settle down debts and collect money to build up working capital of the bank. If the negotiator is good the amount payable by the customer can be brought down by 40%. This amount can be paid of as a lump sum amount or in monthly installments.
Debt settlement is a legitimate alternative to filing bankruptcy. If consumers are experiencing a financial hardship and have at least $10k in unsecured debt then debt settlement can be a legitimate way to eliminate up to 70% of that balance.