Limitations of Debt Settlement - Am I Eligible For Most Programs?
Debt settlement is often considered as the best option for consumers who took loans and now can't afford to pay it back for some reason
. But, this option is not suitable for all the persons who are under debt as there are some limitations to this program. Often there have been cases of people who chose debt settlement program and then realized that they were not eligible for the program or the program was not suited for them. To avoid such situation you should have a proper knowledge about the program you are opting.
The only pre requisite condition to be eligible for the debt settlement program is to have an unsecured debt of over 10,000 dollars and then you can qualify to opt for debt settlement. However, if you have a loan amount which is not huge and is manageable then it would be a big mistake to opt for the debt settlement as then you are only wasting your time and money. For that matter, even the government relief program is only limited to those who have an outstanding debt amount of over $10, 000. This limitation is due to the fact that a debt amount lower than this would not be fit even for a negotiation and your creditors also will not willing to make any settlement deal. Also, you have to win the favor of your company and your creditors that you are in a critical financial condition and thus, need some debt relief help.
Whatever program you choose it is very important to gather information about it so that you do not regret it afterwards. A good thing to use is to go for credit counseling service so as to make sure of your option and also get help in locating a good legal settlement company. Often the counseling comes free of cost so you should definitely take advantage of it.
Limitations of Debt Settlement - Am I Eligible For Most Programs?