truggling with debt and the original balance.
looking for a quicker way
to get out of debt The consumer gets out of debt
completely? faster, and saves a lot of money
in principal and interest.
There are several different
strategies for getting out of The creditor gets a lump sum of
debt that can help you. One that money, and gets it faster than if
is becoming increasingly popular regular payments are made.
is debt settlement (also called
debt negotiation). How do you know if debt
settlement is the right strategy
Debt settlement is a more for you?
aggressive strategy for
eliminating your debt. And it is For anyone considering
not right for everyone. bankruptcy, debt settlement is a
good alternative. While debt
What makes debt settlement settlement does get recorded on
different than other debt your credit report, it is usually
reduction strategies? considered less damaging to your
credit than bankruptcy.
The process of debt settlement is
designed for consumers who are Plus, with less debt, your credit
behind on their payments, and can improve faster, and you’ll
wish to avoid bankruptcy. The have much more financial
consumer (or the company hired to flexibility and “breathing room!”
represent them, which is
recommended) would make an offer
to pay off the balance at a For anyone behind on their
reduced amount, often 40-60% of payments, debt settlement is also
a good option to consider. Since
late payments are already
considered a negative mark on Like you should do before hiring
your credit, settling your debts anyone, it’s a good idea to find
allows you to finally pay off the out as much about the company as
debt. possible. Some good questions to
ask (and make sure you feel
For anyone who just has not made comfortable with the answers):
any progress paying off their
debts, but still pays on time, • How long has the company been
debt settlement can be in business?
considered. While the process of • Does the company have a good
settling debts does work against rating with the Better Business
your credit score, so does a high Bureau (www.bbb.org)?
amount of debt. • What are the fees and expenses?
So, keep in mind that the main • What is the process for
benefit of debt settlement is to collecting your money and making
pay off your debt as quickly as settlement offers?
possible, saving you money in • Can the company refer you to
both interest in principal, and other satisfied customers?
allowing for greater financial
flexibility. Ask as many questions as it takes
for you to be comfortable, with
After all, having good credit is both the process, and the company
worthless, if you don’t have any you hire to help you. And read
money to spend! the fine print carefully.
Are their any guidelines for Then you’ll be on your way to a
hiring a good settlement company? life without debt!
About the Author:
Kris Bickell is the owner of http://www.Debt-Tips.com, a helpful site for consumers struggling with credit card debt. For tips on getting out of debt, fixing your credit & saving money, sign up for the free course “5 Simple Steps To Getting Out Of Debt Faster, Fixing Your Credit Problems, & Saving Lots Of Money!” at http://www.Debt-Tips.com/debt.html
