subject: Debt Settlement Strategies - Why Some Experts Encourage Do-It-Yourself Debt Settlement [print this page] Debt Settlement Strategies - Why Some Experts Encourage Do-It-Yourself Debt Settlement
Debt settlement is one of the debt relief options which are supported by the government and are founded from stimulus money in an indirect way. Stimulus money include billions of dollars which the government use the fix the declining economy. Some of this money is given to the credit card companies if they accept debt settlement negations from costumers and reduce their debt; this can make them accept faster and bigger amounts and also help the consumers in a great way.
It may seem too easy for the creditors to accept negotiations seeing that you will pay a part of your debt and the government will pay the other part, but the creditors will still try to convince you to pay them the minimum amount each month. This will allow them to get more money from you over a very long period of time and you will be stuck in paying the same affordable amount each month for decades to come. Seeing as the payment is fixed and the interest rates are very high, the only thing that can increase it's the duration, and like I said it will take you 30 years to pay back a debt of 10 000 dollars. You don't want such a long term relation with your creditor, especially when you know that debt settlement can be complete in 2-3 years and you won't have to worry about your credit score.
Like any company looking to make a profit, a debt settlement company will ask for a fee for the services they provide, this can be affordable for some consumes while others have a problem with it.
Some experts encourage do-it-yourself settlement because the basic idea is quite simple and you won't have to pay the company fees. You can negotiate with the creditors and explain why you can't afford to pay back the whole amount, if that doesn't work you can always threaten them with bankruptcy, that usually gets their attention. You will have to save the money left on your own but this is not difficult if you are determined to clear debt and put a stop to the stressful life you used to have before debt settlement.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.
