subject: How Unsecured Debt Can Be Eliminated Legally and Ethically - Debt Negotiation Tips [print this page] Unsecured debts can be described as debts that are not collateralize on the assets of a borrower. You can run into problems with unsecured debts as creditors can have a general claim on your assets. However this is an extreme case and you would never want to be in a situation where a claimant is seeking possession of un pledged assets. If you have a high percentage of unsecured debt this is the right time to take action for debt elimination. In the sections below we will try to elucidate how unsecured debt can be eliminated legally.
Debt settlement as the name implies is a process of eliminating debt by negotiating to pay a certain portion of your debt to the creditor. Unethical practices can be followed by both creditors and debtors. A case where the creditor threatens the debtor through collection agencies or harasses the debtor with lots of calls is an unethical act. At the same time, a debtor may stay muted on the due payments or cut off all means of approach and communication. This is a cowardly act and does not project him in good light because he is running away from the situation. Debt settlement is the answer. Credit lending companies do not want to see the debtor declaring bankruptcy as they will receive nothing. A debt settlement is beneficial for the debtor as well, because he will be paying off debt at a discounted price thus avoiding a bankruptcy declaration that will seriously affect his credit score. This approach puts both parties in a win-win situation by agreeing to certain terms for settling unsecured debts.
Even though many people are aware of this process, they don't want to take the plunge because they are not prepared for a negotiation. This is where debt settlement companies come into picture. Different negotiation strategies are applied by these firms and it is based on the type of case they are dealing with. People usually prefer using a debt settlement company to avoid dealing with the countless calls from collection agencies or creditors. Using a debt settlement agency as an interface will definitely make the processing smoother, efficient and faster.
How Unsecured Debt Can Be Eliminated Legally and Ethically - Debt Negotiation Tips
