subject: Debt Relief Services – Take The Benefit Of Reduced Debt Through Debt Settlement [print this page] Debt Relief Services Take The Benefit Of Reduced Debt Through Debt Settlement
If you are struggling with heavy debts with the inability to repay them, you need not despair. Help is available in the form of debt settlement programs. Due to the stimulus money program of the federal government, the financial instittions like credit card companies were saved from immediate ruin. Hence they decided to pass this benefit to the debtors in order to save them from bankruptcy. They also realised that if the debtors file for bankruptcy, the financial institutions dealin in unsecured debts will lose all their money. This is the reason that once the creditors realise that the debtor really cannot repy their loans in full they are more than ready to offer debt settlement program.
However all creditors will usually try their best to get the maximum money out of the debtors. This is the reason that a debtor will have to let the account go delinquent for 12 to 16 weeks before the creditors will even think of debt settlement. Once they do not recieve payments in spite of several collection calls, they sell these bad debts to collection agencies. This is the ideal time to approach creditors for debt settlement. In fact all these tactics to get you the maximum benefit in a debt settlement program, can be learnt from debt settlement companies. If you wan to get the best deal in a debt settlement program it will be a good idea to hire the professional services of a debt settlement company.
Such a company will negotiate the debt with the creditors and convince them to reduce it. The creditors usually analyse the debtors' financial situation and assess his or her actual paying capacity. They then decide upon a settlement amount. Good negotiations can get you a reduction of 50% to 60% on the original amount payable. Once this amount has been decided, you can pay it off as a lump sum which will make you debt free immediately and give you enough time to work on rebuilding your credit scores. This process usually takes 2 to 3 years. However if you decide to pay off this amount in instalments, it will take you a maximum of 48 months to pay off the amount.
