Debt Settlement

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Settlement is the negotiation between either you or a professional firm and the creditors you owe money. Its not advised to do it yourself because this process tends to bring negativity and tension from creditors. That is why it’s always best to do it through a legitimate settlement firm who already has positive relations with most of the major creditors. Your debts are usually negotiated anywhere from 35 to 50 percent of the total outstanding debt. Most of these debt settlement companies aren’t always honest with you.

A lot of times they tell you what you want to hear in the beginning and let you find out the truth at worst possible time. Let’s say you owe $15,000 to 4 different creditors. The settlement company you choose charges a $750 admin fee. This means the first 3 payments you make to your new debt relief organization go straight to their pockets. After that they will charge a per month fee that gets taken out of your payment. The rest of the your payment goes into a trust account. So, whenever the trust
account gets high enough to pay a creditor off, the settlement company makes the payment. This may sound “ok” to you but think about this. Do you really think your creditors are going to wait 6 months to a year to get all of their money back? Probably not. And you can bet you’d still get all kinds of creditor harassment calls and dirty letters in the mail let alone completely destroying your credit. This is why debt settlement is NOT the best debt relief option. This type of relief is usually for people who cannot afford a good debt consolidation or counseling organization but do not want to file bankruptcy.

Advantages:

* You save/cut thousands on your debt.
* Will take only 1-4 years to eliminate debt.
* Monthly payments reduced up to half.

Disadvantages:

* Your credit will be affected in a negative manner.
* Calls from creditors will continue.
* In most cases you must have at least $10,000 in unsecured
debt.

If you are interested in debt negotiation/settlement, please use this link to receive more information.

 

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