Debt Settlement in 279 Words

Debt Settlement in 279 Words

The Basics of Debt Settlement¬†Explained If you are faced with massive debt, timely bill payment is difficult and you want to stop annoying and intruding collection calls, debt settlement may be a viable option. Also known as debt negotiation, debt settlement is a process by which your outstanding debt is typically settled for 40%-60% of the amount owed. By agreeing to this settled amount, the creditor or lender is forgiving the remaining debt, thereby helping the borrower or debtor get out of debt faster.   The 4 Basic Steps in Debt Settlement…   Client stops payment to creditors, and starts contributing to trust account. Collection calls are handled by the debt settlement representatives. Negotiation of debt happens a few months after program begins. Debt is lowered by 40%-60% in an overall shorter time period.   Brief History on Debt Settlement: Lenders have been practicing debt settlement concepts for hundreds of years. Creditors are usually willing to settle because it means that they will receive some amount of money owed as opposed to nothing or very little if the client files for bankruptcy. Debt settlement became prominent in America when bank deregulation during the late 80s made lending to consumers easier. This deregulation was followed by a recession which created financial hardships for consumers. As individual consumer debts increased, banks established debt settlement departments to negotiate with defaulted cardholders.   Changes to Bankruptcy Laws: Not only have personal debt loads raised but another under reported change in 2005 has driven the demand for debt settlement. Legislation now has made it more difficult for Americans to claim Chapter 7 bankruptcy. Currently anyone filing for bankruptcy will be required to meet IRS regulations or will be forced into Chapter 13 which is a debt restructuring plan....

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5 Simple Ways To Reduce Debt Payments

5 Simple Ways To Reduce Debt Payments

How You Can Reduce Your Monthly Debt Payments An Advanced Strategy In Debt Reduction: These 5 simple steps to reduce debt are designed for those who are truly struggling with their unsecured debt. There are basic debt reduction steps you can take that are outlined here. The methods listed below are more of a last Hoorah! Before a complete debt settlement or bankruptcy decision is made. Please feel free to contact us if you’d like a free debt diagnosis to find out where you might stand and what your next move should be. Reducing monthly debt payments isn’t rocket science. All it takes is a little organization and determination on your part. If you find yourself struggling to make the minimum payments, and you’re continually watching your balance climb due to high interest rates, give at least one of these options a try. In most cases 2-3 of them will take a substantial load of your back and free you of the stress your unsecured debt has so kindly placed on you.   1. Transfer Credit Card Balances: This option may not be available for everyone, but if your credit is still in good shape there are plenty of offers out there for you. Most of the time you can get a balance transfer credit card at a rate much lower than your present credit card interest rate. ¬†If you do your homework, you can find credit cards offering extremely low introductory APR’s on all credit card balance transfers. There are a few credit card programs left that even offer 0% introductory APR’s on balance transfers; utilizing this period to make interest free payments is extremely beneficial.   2. Negotiate Debts With Creditors: Again, this may or may not work depending on if you’re still current on your payments, and who your creditor is. Unfortunately most creditors are unwilling to negotiate if you’re still making your monthly payments on time. If you are current, and don’t want to “settle” your debt, call and talk to each individual creditor and let them know you’ve run into some sort of hardship. Make sure you’ve got all your facts and figures straight before making the call, this way you know exactly what you’re able to pay to them each month and what your current balances are. In some cases they may even reduce your APR in attempt to assist you. On the...

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