This economy has caused many Americans to reevaluate previous beliefs about debt. As a result, many people are going out of their way to avoid incurring new debt, while others are focused on paying down preexisting debt. However, some people are in the unenviable position of feeling absolutely overwhelmed by high levels of credit card debt, medical and health care debt and other types of unsecured debt. Many of these people feel that they have no alternative other than bankruptcy, but they do not fully comprehend the effect that bankruptcy can have on their lives going forward.
A method a lot of folks haven?t thought of is debt settlement. Lenders are short of money, as shown by the Federal government?s demand that they stock up on billions of dollars for the accounts they maintain. Debt settlement companies work with account holders and banks to pay off a person?s bills for less money than is owed. So, instead of a person only paying the minimum payment for many years, struggling to settle a bill for $20,000 on just $50 each month, they can come to an agreement with the person?s credit account holder to make a better deal.
Most American's believe Bankruptcy is debt settlement. It is not! It is a 'final' alternative too often mistakenly sold to American's as the only solution. Certainly Chapter 11 or Chapter- can reduce debt. Even eliminate it. It can also leave you unable to borrow, or obtain a mortgage for seven years or longer. Bankruptcy is a last resort.
Being debt free is a goal that many of us can only hope for, but with a reputable debt settlement company, being debt free can become a reality. This method of debt resolution allows you to engage in a two way negotiation with creditors and collection agencies to settle your debts not for what THEY want, but for as much as YOU can afford to pay. Choosing this option will avoid bankruptcy and will maintain your credit in good standing in the long run.
The factors that influence the amount of debt that can be settled include your age, your health, your income, your goals, and the amount of your debt. Today more than three million people seek the resolve of debt, settlement of debt, by contacting a licensed and bonded Credit Counseling Agency. Many are non profit organizations. Some Credit Counseling Agencies offer the services of attorneys. This service is vital should you be aging, facing disability or poor health; for an attorney can help you reduce your debt by more than one half.
For workers facing reduced income or we hope temporary unemployment a Credit Counseling Agency can see your fees reduced on revolving credit accounts (credit cards), and can negotiate with the your lenders to see your interest rate reduced. The Credit Counseling Service will charge a nominal monthly processing fee for this (usually $35-50 per month). This fee is necessary to cover processing costs. You will pay one payment monthly to the Credit Counseling Agency who then will pay the negotiated reduced monthly payment to each creditor. The Credit Counseling Agency will ask you to sign a contract. Usually this process reduces your monthly outlay in bills 'due' to one quarter of what they were, while reducing the long term length of that debt. These services are offered over the Internet and resemble familiar 'bill pay' features. Credit Counseling Services also offer consumers advice on how to borrow money by providing articles, and advice on how to make and keep a monthly budget. This includes teaching the understanding of monthly fees, interest rates, and long term goals when using credit cards. They even provide advice on how to choose a lender or mortgage alternatives and rates. And for those of us retired or disabled it might be time to ask questions regarding 'Reverse Mortgages'.
Many reputable debt settlement companies will work closely with you to determine what your needs are. Once that has been ascertained, your debt settlement company will be a tough advocate and negotiator for you against the lender to reduce the debt amount. Options presented to you may include payment of a lump sum, or payment of monthly payments. Even if you have no money saved, legitimate debt settlement companies will collect your money for you and set up an account that will be used to pay your debt.
Believe it or not, lenders and banks are so desperate for cash right now that some debt settlement amounts total less than one half of what the person owes. That means that a $20,000 debt might be settled for only $10,000! - 29866
A method a lot of folks haven?t thought of is debt settlement. Lenders are short of money, as shown by the Federal government?s demand that they stock up on billions of dollars for the accounts they maintain. Debt settlement companies work with account holders and banks to pay off a person?s bills for less money than is owed. So, instead of a person only paying the minimum payment for many years, struggling to settle a bill for $20,000 on just $50 each month, they can come to an agreement with the person?s credit account holder to make a better deal.
Most American's believe Bankruptcy is debt settlement. It is not! It is a 'final' alternative too often mistakenly sold to American's as the only solution. Certainly Chapter 11 or Chapter- can reduce debt. Even eliminate it. It can also leave you unable to borrow, or obtain a mortgage for seven years or longer. Bankruptcy is a last resort.
Being debt free is a goal that many of us can only hope for, but with a reputable debt settlement company, being debt free can become a reality. This method of debt resolution allows you to engage in a two way negotiation with creditors and collection agencies to settle your debts not for what THEY want, but for as much as YOU can afford to pay. Choosing this option will avoid bankruptcy and will maintain your credit in good standing in the long run.
The factors that influence the amount of debt that can be settled include your age, your health, your income, your goals, and the amount of your debt. Today more than three million people seek the resolve of debt, settlement of debt, by contacting a licensed and bonded Credit Counseling Agency. Many are non profit organizations. Some Credit Counseling Agencies offer the services of attorneys. This service is vital should you be aging, facing disability or poor health; for an attorney can help you reduce your debt by more than one half.
For workers facing reduced income or we hope temporary unemployment a Credit Counseling Agency can see your fees reduced on revolving credit accounts (credit cards), and can negotiate with the your lenders to see your interest rate reduced. The Credit Counseling Service will charge a nominal monthly processing fee for this (usually $35-50 per month). This fee is necessary to cover processing costs. You will pay one payment monthly to the Credit Counseling Agency who then will pay the negotiated reduced monthly payment to each creditor. The Credit Counseling Agency will ask you to sign a contract. Usually this process reduces your monthly outlay in bills 'due' to one quarter of what they were, while reducing the long term length of that debt. These services are offered over the Internet and resemble familiar 'bill pay' features. Credit Counseling Services also offer consumers advice on how to borrow money by providing articles, and advice on how to make and keep a monthly budget. This includes teaching the understanding of monthly fees, interest rates, and long term goals when using credit cards. They even provide advice on how to choose a lender or mortgage alternatives and rates. And for those of us retired or disabled it might be time to ask questions regarding 'Reverse Mortgages'.
Many reputable debt settlement companies will work closely with you to determine what your needs are. Once that has been ascertained, your debt settlement company will be a tough advocate and negotiator for you against the lender to reduce the debt amount. Options presented to you may include payment of a lump sum, or payment of monthly payments. Even if you have no money saved, legitimate debt settlement companies will collect your money for you and set up an account that will be used to pay your debt.
Believe it or not, lenders and banks are so desperate for cash right now that some debt settlement amounts total less than one half of what the person owes. That means that a $20,000 debt might be settled for only $10,000! - 29866
About the Author:
Layla Vanderbilt is the content coordinator for a leading website that offers for debt consolidation advice and guidance.
