As a consumer, has your monthly spending continued to outgrow your earnings? Has your financial situation changed over the past several years? Have you suffered an medical emergency or lost your job? Then a debt settlement company may be the solution to your problem.
Debt settlement is a method by which a third party negotiates with your lenders to reduce your unsecured credit card debt. Doesn't that sound easy? However, it is important for the consumer to have a complete understanding of how a debt settlement company operates.
The consumer needs to understand the various alternatives that might be a solution to their financial burden. The alternatives available to the consumer are: debt consolidation, debt counseling, equity loan on home, bankruptcy or debt settlement.
So a quick review of these alternatives:
· Debt consolidation - This approach allows the consumer to pick and choose which debts to consolidation into a term loan with a lender. A term loan is normally secured by collateral from your lender and can try up to 5 years to repay.
· Debt counseling - The consumer meets with a counselor to determine an set budget to pay off your debt to the lenders. The consumer is still required to pay off their entire balances.
· Home equity loan - This allows the consumer to borrow against their personal residence. There may or may not be enough equity in their residence to qualify for this loan.
· Bankruptcy - This is a major step for the consumer. The consumer needs to discuss with their attorney.
· Debt settlement - The debt settlement company establishes a monthly repayment plan. After at least half of your lowest outstanding unsecured credit card balance is achieved. The third party will negotiate with your lender to reduce your debt. This negotiation can be from 40 to 50% of the balance. This process can take between 12 to 48 months depending upon your debt burden.
If is important for the consumer to understand all the step involved in a debt settlement. However, when compared against the other alternatives it appears to be a better method in changing your financial situation.
Subscribe to:
Post Comments (Atom)
1 comment:
Hello, I have come to this Blog in look for of valuable information that I propose to allocate with all my friends …Though I consider that the best way to stay away as of problems is not other than preserve your spends under control, be idea at all time, and resist the excitement of overrate your chances, particularly at what time you borrow money!
Post a Comment