Unsecured Debt Reduction - How Consumers Can Reduce Debt In This Market

Unsecured Debt Reduction - How Consumers Can Reduce Debt In This Market

Are you looking for unsecured debt reduction? Reducing unsecured debt in this market is possible with debt settlement. This method uses the threat of bankruptcy to eliminate at least 50% of the unsecured debt that the borrowers have. There are some requirements which the borrowers need to fulfill in order to be able to apply for settlement. They are mentioned below:

Overall debt of $10k or more.

Debts need to be consolidated in one place.

The borrower needs to have a consistent income source.

Settlement can have two approaches:

Using a professional debt settlement firm.

Do it yourself arbitration.

With professional firm, the borrowers can enjoy at least 50% elimination and up to 70% debt elimination and with do it yourself arbitration, the maximum that the borrowers can achieve is 30%. It is left on to the borrowers to decide the approach.

Both the approaches of settlement have the same procedure and follows the same steps. The steps are mentioned below:

Delinquency: The professional negotiator from the firm hired will advice the borrower to go delinquent. This is supposed to prove that the borrower is in financial trouble.

Informing the lender: The negotiator will send a letter to the lender and inform that the borrower can no longer afford to pay the debt in full and is seeking settlement. The letter also ensures that no legal steps are taken by the lender.

Waiting and hiring Collection Agency: After delinquency of the borrower, the lender waits for 90 days and up to a maximum of 120 days and then hires a collection agency. The agency gains in this deal and agrees to pay back only 20% to 30% of the entire recovery from the borrower to the lender. The lender agrees because of the limitation of options.

Contacting lender and bankruptcy threat: The negotiator contacts the lender and asks the lender to wipe of 50% of the debt and the remaining will be paid in bulk. The negotiator also uses the threat of bankruptcy to force the lender to agree to this offer.

lender's view: The lender will never want bankruptcy and will also find that the new deal is far more profitable and hence agrees to the deal.

New agreement and repayment: The lender agrees to the deal and wipes off the debt by 50% or more and makes a new agreement. The borrower then pays according to the agreed terms and conditions as per the new agreement.

This is how a borrower can reduce his or her unsecured debt in this market condition.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.

POST COMMENT

Printed Marketing Material Are Still Effective 200 One Way Backlinks- Blog Marketing Crash Course Intricacies In Indian Share Market Investing, Commodity Trading 2010 Article Marketer- Blog Posting – A Good Source of Links Article Marketing Strategies- Blog Software For All Your Blogging Needs Financial Crisis Brought About 300 Billion Training Industry Market Opportunities - The Financial Article Marketing Experts- Blog Software For All Your Blogging Needs, Dominate The Market! Easy Article Marketing- Blog Waiter – How To Get Tips From Your Blogging That Pay Big Time! Article Marketing Smackdown-Blog your way to profits Dominate Article Marketing- Blogging - Developing A Readership Free Gifts With Mobile Phones A Major Weapon In The Marketing Arsenal Of Carriers And Dealers! How to Choose the Right Opportunity for Affiliate Marketing Having A Volatile Mortgage Market