subject: Credit Card Debt Program - Weighing the Pros and Cons of Debt Settlement [print this page] A debt settlement program is one of the most attractive and popular alternative of dealing with a crisis situation and to eliminate the debt. It is a process of settling your debt through a radical approach which involves negotiation where the both the parties i.e. the debtor and creditor agrees upon a common reduced amount which the debtor will consider as a full payment for the outstanding balance owed by the customer. But, before considering settlement as the best option we should also weigh its pros and cons to evaluate where this plan is really suitable to them.
The benefits of having a settlement are - Firstly, it is a very effective relief option which can help you enjoy the liberation by cutting down your finances and toning down your debts that too at a considerable lower debt amount. Besides the obvious merit of settlement, the other benefit is no longer disturbance with the harassing collection calls by the lenders as Debt settlement companies personally deal with your lenders by contacting them and informing them that now they are your representatives. Secondly, the benefit of this method is Saving Money. People can actually save up to 40- 60% of their money by getting professional debt settlement help. Thirdly, the creditors can be really accommodating and allow the client to pay the debt amount in easy monthly installments and moreover, you can request the lender to delete any negative information on their credit report.
On the other hand, there are also some drawbacks associated with this method. Your Credit report will show that you have gone for a debt settlement rather than paying the credit in full and you may face a risk. Besides, if you have signed with any Debt settlement company it is mandatory to pay for an upfront to this company to enroll for the program and in addition to that you are also required to pay an additional monthly charge. Debt settlement is not good for people who do not owe a huge liability and debt as you can easily write off your debts on your own.
Credit Card Debt Program - Weighing the Pros and Cons of Debt Settlement
