Debt Settlement Programs: What Are They and What Are the Benefits of Joining One?
It is not common for people to struggle with their debts. If you feel like you are in way over your head, help is available. One strategy that might be ideal for your needs is to try to settle down. However, you don’t have to do this on your own, as there are some very useful debt settlement programs available. No matter how much debt you are in, there must be a solution.
What exactly is debt settlement and how does it work?
It is a form of agreement between you and your creditor(s), which is usually a bank or credit card company, in which you agree to pay back SOME of the money as a lump sum less than what you owe, or a few larger payments in a shorter period of time that add up to less than what you owe. There are many variables depending on the creditors, the amount you owe, and whether you are trying to do the negotiation on your own or have a third party do it for you.
It is STRONGLY recommended that you use debt settlement programs so that you can have a professional take care of the hard work, legal work and negotiations on your behalf. The settlement company might even advise you to stop paying creditors until a settlement agreement is reached. Once it’s reached, the terms of at least one of the debts you owe are further modified in a way that’s fair to you. You must agree to the new terms and then make at least one payment to the debt collector or creditor in the agreed amount. This is normally when the debt settlement professional will start charging you fees for their services.
The ideal agreement should be one that allows the client (you) to withdraw without having to pay the full amount of the debt. How much you can save depends on numerous factors, as mentioned above. It is best to choose a debt settlement/relief program that has a great reputation and many positive comments and reviews.
Will obtaining debt settlement services have a negative effect on my credit report?
It is possible, as any type of credit counseling/liquidation/consolidation option you select could affect your credit score. However, even if it hurts your score at first, these types of solutions will give you a better chance of recovering and repairing your credit repair more quickly than if you tried to do everything yourself or let your debts go unpaid.
What is the right company or service?
There are many debt settlement programs out there, but if there’s one you really should consider, it’s CuraDebt. This company does not charge a fee for initial counseling sessions and you can request a FREE consultation/savings estimate.