How to Eliminate Unsecured Debts by 50% - A Proven Debt Relief Tactic
Unsecured debt is a matter of major concern for most of the debtors
. The interest rates on these loans are higher than the other loans. The highest interest is charged on credit cards hence if these unsecured debts can be removed, a major part of the debtor's worries will be taken care of.
There are many debt relief methods which can relieve the debtor of this debt worries. One of the most popular debt relief methods is debt settlement. It is also known as debt negotiation or debt arbitration. This method mainly involves reduction of the total debt amount in agreement with the creditors. Any debtor having ten thousand dollars or more in unsecured debt can be a part of settlement program.
The creditors agree to settle the debt if the customer has been missing out on payments or if the debtor is on the verge of filing for bankruptcy. Under such conditions the creditor need to get back as much from the debtor as possible. If the debtor files for bankruptcy, the creditors will not be able to retrieve any money from that customer.
A smart customer can use this information to his advantage. He will have to convince his creditor that the only other way out of financial problems is bankruptcy. A debt settlement company can help a debtor with the entire debt settlement process. Once the creditors agree to settle the account, the debtor will need a certain amount of money in order to negotiate the debt reduction.
Let's say the total debt of the customer is of 10k and he has a saving of 5k then he can give this amount as a lump sum payment in return of debt elimination. A good negotiation can get as much as 50 % of the total debt eliminated.
How to Eliminate Unsecured Debts by 50% - A Proven Debt Relief Tactic