subject: Credit Card Debt Settlement Bailouts - How The Debt Settlement Process Works [print this page] Credit Card Debt Settlement Bailouts - How The Debt Settlement Process Works
Many consumers are in trouble. The financial downturn has definitely taken a toll. Many consumers can no longer afford to pay their bills. For those consumers there is relief in the form of the debt settlement process. The debt settlement process is really quite simple. The hardest part is deciding to get started. But for many consumers it is the right way to go.
First the consumer needs to hire a settlement firm and give them all the details of their financial situation. Be totally honest with these people because they need the information to help you. They are professionals and will hold the information in strictest confidence. They will also advise you on how to set up a budget so that you can live within your current means. They are true professionals and are there to act on your behalf. Not like those creditors that have been calling.
The second step is that the negotiator will send out a letter to your creditors explaining your financial situation and telling them that they you will no longer be paying them in full. They will include with your letter the proof that your conditions have gotten bad enough that you can't pay the bills.
The credit card company will then wait for up to four months and then contact the credit counselor about a plan to pay them. The trained professional at the credit counseling company will negotiate the debt down for you. They will say very honestly that your only other choice is bankruptcy.
The credit card company never wants you to file bankruptcy. Under bankruptcy they get nothing. So they will agree to lower your payments. The credit counselor will then agree to a new deal often at 50 cents on the dollar. At this point, a new contract will be signed between you and the creditor.
The consumer then pays the credit counselor one monthly check. The credit counselor then pays the credit card companies.
Finally after your debt is settled the firm will collect a fee for their part in the process. So if you are having trouble making ends meet then why are you waiting. Meet some true professionals today.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
Check out the following link for free help from a certified debt relief specialist:
