Card Debt Relief - Settlement For Reduced Debt Balances
Card Debt Relief - Settlement For Reduced Debt Balances
If you are heavily under debt, you should consider the option of settlement in order to reduce your burden. Under a debt settlement procedure you can request your creditors to reduce the amount payable. If negotiated well this amount can be as low as 50% of the original loan amount. In fact to get the best deal in debt settlement negotiations it is best to hire a settlement company.
Once you have hired a settlement company you will not have to deal with the creditors at all. Even your collection calls will be handled by the settlement company. However with a little research you can arm yourself with enough knowledge about settlement laws and your rights as a debtor. In either case your debt burden will be greatly reduced once you opt for settlement. IT is always best to pay off the settlement amount as a lump sum as this makes you debt free immediately.
However even if you decide to pay this amount in instalments, a settlement program will drastically reduce your debt balances as the rate of interest on the settlement amount can also be negotiated. Apart from debt settlement you can opt for procedures like debt consolidation and conversion of loans. In the procedure of debt consolidation several high interest loans can be paid off using one single low interest loan. There are many financial institutions in the market which specialise in debt consolidation. With help of this procedure your monthly instalment amount will be less than what you were paying earlier to your different creditors. Not only this instead of making several payments to different creditors in different payment cycles, you will be paying a single instalment once a month. This will make the payment much more manageable.
Another method of reducing unsecured debts is to convert unsecured loans into secured ones. This can be done by offering some fixed asset as collateral against the loan. The rate of interest on secured loans is much lower than on unsecured loans. This will significantly reduce your burden of debt. Usually a combination of debt settlement consolidation and conversion is most effective in debt management.