subject: Debt Settlement Relief Programs - Legally Eliminate Half Of Your Unsecured Debts [print this page] Debt Settlement Relief Programs - Legally Eliminate Half Of Your Unsecured Debts
Legally eliminating half of your unsecured debts is now possible because of the method of debt settlement. With this method, there are some benefits that you can earn. First, you need to pay only half of the amount due and sometimes if you are lucky, you may have to pay even less. Second, you don't have to deal with the attorneys and neither do you have to face other legal hassles and third, you will find that your credit score remains intact. It is because of these reasons that the method of settlement has replaced the method of bankruptcy. But how can you achieve all these?
Simple! If your unsecured debt is $10k or more, the first thing that you need to do is to get hold of a professional debt settlement firm and on advice of the negotiator, you will have to go delinquent. As you go delinquent, the creditor will contact a collection agency after the time frame of 3-4 months and then hand over the debt to the agency for recovery. The agency will agree to pay only 20 percent to a maximum of 30 percent to the creditor from the total recovered money.
At this point, the creditor will get a call from the negotiator with an offer of half of the debt repayment in bulk. There will be a couple of conditions and a threat associated with that offer from the negotiator. They are:
The rest of the dues need to be waived off.
The credit bureaus need to be reported as debt paid in full and credit score of the consumer is to be retrieved.
The consumer will face bankruptcy in case the creditor declines the deal.
The creditor will agree and settle the dues for less. The consumer will then have to repay the remaining amount to the creditor in bulk. This is how you legally eliminate half of your unsecured debts.
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.
