Debt Settlement - How to Eliminate Your Debts Legally and For Good
Debt Settlement - How to Eliminate Your Debts Legally and For Good
With the state of the economy right now many people are staring debt in the face. This is a terrifying prospect and if you do not sort it out it can cost you your home. The economy has ground to a halt and jobs are being lost all over and you need help with debt settlement.
The reason many people are in this position can be anything from divorce to your employer cutting extra hours and when this happens you will find that bills just mount up and hoping that something will turn up next month is not the answer.
What can you do?
If this happens to you and the debt is unsecured you have several things you can do. Many people just keep making the minimum payments on what they owe. This is a big mistake because all you are doing is paying the interest and at that rate even a small $2000 debt can take ten years to pay and cost you up to $20,000.
Another option is debt consolidation. This works by taking all your debts and putting them into one big loan or consolidating them. The amount you pay and the interest is determined by your credit score and the amount of debt and your income.
The problem with this is obvious. If you have a poor credit score you are going to get hit harder and it is those who need this the most who will pay more. The other problem you have to examine carefully is this. If your debt is very high you have to ensure the consolidated loan is affordable and this is why this is not the best solution to eliminate debt legally for many people.
Debt counselling is another solution. This is where you get professional help and advice on how to pay your debts. This may sound like a good idea until you realise that this will only work if you have sufficient income to service your debts. If you do not then you need to look at other solutions.
Debt settlement is another option and if you have big debts this may be the best option for you. As long as your debt is unsecured you will probably be able to take advantage of this and eliminate your debts legally and wipe them out for good.
The settlement process works by working out how much you can afford to pay then the settlement company negotiating with your lenders to reduce what you owe below this amount so you can afford to meet your payments.
What will happen then is a settlement account will be created for you and all your payments will be made from this. As you continue making payments your credit score will start to recover and this can take anywhere from a year to several years depending on how much you owe.
Debt settlement has clearly help thousands of people out of the endless despair caused by debt and if the situation is one you face the most important thing you can do right now is to get help and advice on what to do next. Do not wait until it is too late to get help. Take action to eliminate your debts legally and wipe them out now. Click here to get debt help now.