Eliminate Credit Card Debt Fast With Debt Settlement that Works
Debt settlement companies exist to help people clear debt
, they will negotiate with your creditors to achieve much reduced settlement figures that can save you up to 50% of your debt, except that it is never really 50% as you will find out later on.
Debt settlement companies always use the same pattern or steps during the settlement process as they are pretty much standard throughout the industry, below is an example of how the settlement process works to
eliminate credit card debt fastA debtor has a debt of $50,000 over four credit cards and is struggling to make even the minimum payments each month. A credit counseling service has already attempted negotiating with the creditors but the reduced payments were still too high for the debtor to pay.
Bankruptcy is an option, but the debtor does not wish to go down this route as it will destroy his/her credit rating for at least the next ten years, nor does the debtor want to go to court, which would be inevitable if this path was chosen.
Another option, and the one the debtor opts for, is to work with a credit card debt settlement company who advises that the following four steps are taking in order to get rid of the $50,000 credit card debt:
Collection calls are passed on: Once payments begin to get behind the credit card companies will start to call the debtor with requests for payments these are effectively passed on to and handled by a representative from the debt settlement company.
Negotiation begins: As money is continually being paid into the trust account, the debt settlement company representative will begin negotiations with the creditors to help you to eliminate credit card debt fast.
Settlements of between 40-60% are acquired: Part of the negotiation process is getting the credit card companies to accept the fact that the debtor cannot afford to pay the individual debts in full and as a result they agree to accept a much reduced amount, often between 40% to 60% of the outstanding debt.
These settlements do not happen all at once, but as they do the debtor is able to pay them off using the money deposited in the trust account. It is important however, that any extra funds the debtor finds are deposited into the trust account also. It is completely possible that this debt could be completely cleared in as little as two years, depending on how successful the negotiations have been.
It is irrespective whether it is a credit card debt settlement program or one that includes other forms of debt the initial thing you should do is to stop paying your creditors and forward payments to your debt settlement company instead, without doing so you risk not having funds in place when an agreeable settlement is offered.
There are certain debts that you can be settled with these techniques and those that can't as they are excluded from settlement programs:
Debts that can be settled:
Unsecured Credit card debt
Medical Bills
Gas/store cards
Personal loans
And basically anything credit that is unsecured
Debts that can't be settled:
Tax debts
Alimony,
Child support,
Mortgages,
Student Loans that are covered by federal insurance
The amount you will actually save through the settlement company's efforts equates to between 40-50% of the balance that is forgiven by the creditors.
The whole process can take as little as 2 years but could extend to 4 years, but this is mainly dictated by the size of the debt being settled.
once both sides have agreed upon a settlement and the debt has been paid off, as per the agreement, most creditors will not pursue you for the remaining balance. However, in certain states creditors still retain the right to sue under certain conditions. It is prudent to find out whether suing after settlement is illegal or not in your state. If you want to eliminate credit card debt fast this is the best method.
Click here to get help now and eliminate your debts.
Eliminate Credit Card Debt Fast With Debt Settlement that Works
By: Alice Johnson
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