subject: Debt Relief Services – Are You Choosing Your Payment Plan Wisely According To Your Pocket? [print this page] Debt Relief Services Are You Choosing Your Payment Plan Wisely According To Your Pocket?
Once you have decided to opt for a debt settlement programs, you will have to negotiate the debts with various creditors. Chances are that not all creditors will give you a similar deal. At the same time you have to be aware of the debt settlement laws and your rights as a debtor. Meanwhile the collection calls dont stop till you have reached an agreement with the creditors. All in all debt settlement can be quite a stressful procedure. In this situation iot is quite possible for creditors to suggest a payment plan which suits them best rather than you. You may end up agreeing to a payment plan which very simply is beyond your means. This will put you in a very tight spot because if you default payments after a debt settlement program, it can have very serious consequences.
In fact choosing a suitable payment plan is sometimes the most tricky part of a debt settlement program. What you should do is ask the creditors for a number of options. Then you should sit down and analyse your current financial situation. It is always best to pay off the settlement amount as a lump sum as it makes you debt free immediately. This leaves you free to concentrate on rebuilding your credit scores which usually takes 2 to 3 years and a lot of hard work and discipline. If however you do not have that much cash in hand you can opt to pay off some of the debts as lump sum and the remaining in installments. You can choose the lower interest ones to pay off later. Even this interest can be negotiated and the creditors can be persuaded to reduce it.
You should keep in mind that you have at least 48 months to make the payments in installments. However do not delay paying off the loan unnecessarily. However here you need to keep in mind that if you miss even a few payments, your property will be forfeited. IF the mathematics involved in all this seems to baffle you, it would be best to hire a debt settlement company.
