subject: Debt Relief Services – Get Rid Of Debt By Paying Back Through Debt Settlement [print this page] Debt Relief Services Get Rid Of Debt By Paying Back Through Debt Settlement
If you have accumulated more than $ 10,000 in unsecured debts, you are a sure candidate for debt settlement. Under a debt settlement program, you can approach your creditors with a request to reduce your loan amount. The creditors will then assess your financial situation and assess your actual paying capacity. They will then decide upon a settlement amount which can be negotiated further. If you negotiate well you will be able to get the creditors to reduce almost 50% of the total amount. This amount can then be paid off as a lump sum or in equated monthly installments. It is always best to pay off this amount as a lump sum as this will make you debt free immediately and save you the interest that you would otherwise have to pay. The creditors will also give you a better deal as they will get a lump sum amount. If however you decide to pay this amount in instalments, then you can persuade the creditors to reduce the rate of interest. The creditors can also be convinced to waive off the late payment and non payment charges, reducing the burden of debt further.
If you do not have the means to pay off the settlement amount as a lump sum, you can opt for debt consolidation. Under this procedure, several high interest loans are paid off with a single low interest one. This not only reduces the amount you pay as instalments every month, it will also make the payments more manageable. If on the other hand you have some fixed asset, you can offer it as collateral against the unsecured loans and convert them into secured ones. This will drastically reduce the rate of interest on the loan and hence the burden of debt.
All these methods and the best way to implement them can be learnt from a debt settlement company. In fact if you hire the professional services of a debt settlement company, you will not have to deal with the creditors at all. Even the collection calls will be handled by the debt settlement company.
