Debt Settlement FAQ - Do Debt Settlement Programs Actually Work?
Debt Settlement FAQ - Do Debt Settlement Programs Actually Work
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You probably seen a lot of advertising with debt settlement programs lately; they all promise big reduction from your debt and a relaxed financial future. But do they really work?
Debt settlement is a perfectly legal way to get rid of your debt and not only that, but it is also sponsored by the government. You might be wondering how and why it is sponsored by the government. First, debt settlement was brought to the media attention to make people avoid bankruptcy. The government prefers people going for debt settlement rather than choosing bankruptcy, and it will pay big money to keep them choosing debt settlement. How much money? As much as you need to get some of your debt reduced. We are talking here about more than ten thousand dollars of debt, so I guess we can call that big money.
How can you obtain a settlement? By informing your creditor that you want to negotiate your debt and hire a good negotiator. What makes a good negotiator? An experienced, professional person who knows what they are doing. You can even find them online so that's supposed to be an easy task. As long as the company they are working for is registered within the Better Business Bureau you've got yourself a good and legitimate negotiator.
What happens during a settlement? Many people ask this question because they are puzzled about the whole process which looks a little complicated. There's nothing complicated about it, the negotiator does what he's supposed to do, which is negotiating. After obtaining the reduction you start making a payment plan; you can pay the sum as a whole if you have the money, but if you don't making a good payment plan is the key.
How much can you obtain? This depends on the skill of your negotiator and on the amount you own. There have been reductions from 40% to 70% registered, so think about those figures when trying to calculate. Even with the smallest reduction there's still a reduction from your debt and it can greatly help you paying it back easily. Get your settlement company today and never think about debt again.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.