Debt Settlement Services and Programs – Debt Counselors are waiting to help you.Eliminate debt

Oct. 12, 2009 - PRLog -- Debt Settlement Services and Programs – Debt Counselors are waiting to help you.

Eliminate your debt without filing bankruptcy

If you are like most Americans in debt and behind on paying your bills only to receive calls from collections agencies, you may consider debt settlement (also known as debt negotiation). With some debt settlement programs it is possible to eliminate 40%-60% of your debt. The creditor forgives the remaining debt thereby helping you to get out of debt faster.

Debt Settlement and Credit Card Settlement Process
Typically the debt settlement negotiation occurs between the debt settlement company and the creditors to establish an amount that would be fair for the consumer and the creditor.  It is common for some debt settlement companies to charge a fee upon signing up, however, this varies from one establishment to the next.

Credit card debt settlement example:
Consumer “A” is in debt of $200,000 on 6 credit cards and is behind on their minimum monthly payments. The consumer contacts the debt counseling /credit counseling service to negotiate a settlement with their creditors, however, the credit settlement was still too high.   Filing for bankruptcy is not an option so the consumer decides to go along with the negotiation. The following are some options that most consumers are not aware of:

1.   Stop payment to creditors: The credit card debt settlement company informs the consumer to halt payment to the creditors and now deposit a given amount into a savings account.
2.   Debt Settlement Company handles annoying Collection Calls: The reason that a consumer hires a debt settlement company is to handles debt affairs that relate to collection agencies.  No more headaches!
3.   Negotiation comes next: Once the consumer has accumulated a substantial amount of savings the debt settlement company will contact each creditor.
4.   Debt is eliminated by 40-60%: The debt settlement company will discuss with the creditor that you are experiencing a financial hardship but that you have made a valiant attempt to build up some liquid into a savings account.  

If the consumer pays off one debt, other creditors will most likely offer a negotiation. All additional monies that the consumer has left over will be used for bills.  Typically a consumer can expect to negotiate with all their creditors after a period of 1.5 - 2 years

Gathering of funds and putting those funds into a savings account will send a message to the creditors that you are trying to fix the debt problems.  

Debts you can settle vs. those Debts that cannot be settled!
Types of debt that can be settled include credit card, medical bills, gas/store cards, personal loans, however, tax debts to the government, alimony to former spouse, child support, home  mortgages, automobile loans and federally insured student loans are excluded from a settlement program.

Debt Settlement Agency Fees
Debt settlement companies charge 25-35% of the debt balance that is forgiven under the program. The fees are based on:

•   Total Amount Owed
•   How many creditors you owe
•   Savings accumulated post debt settlement

Debt Settlement Time Frame
Typically a consumer can expect to pay off all their debt within 2-4 years.   Obviously the more debt owed the longer a consumer can expect to pay it off.

Creditors cannot file a suit after negotiations are complete.
Once you negotiate debt settlements with your creditors/CAs, they may not come after you for the balance. It is illegal in many states such as Arkansas, Texas, Georgia, Michigan, Washington etc. However, in other states such as Alabama, Delaware etc, the creditor retains his right to sue you under certain conditions.

Choosing the right debt settlement company
Why you should you use Debt Settlement services?
1.   Filing for Bankruptcy Not a Factor: With debt settlements, you can reduce your debt burden and pay off bills comfortably. Debt negotiation allows a consumer to settle their debts based on how much they can afford to pay the creditor. Bankruptcy offers too many risks which include possibility of losing your home or automobile that is used towards paying off your debts to creditors.
2.   One payment per month towards all you debt: Prior to debt negotiation a consumer pays each creditor the owed amount.   After debt settlement or credit card settlement negotiation the consumer will pay a single amount each month instead of multiple payments to each creditor.  The monthly payments sit in a trust account that will be used to pay your creditors.  This process eliminates a ton of stress because different interest rates are extinguished and you no longer have to deal with multiple creditors.
3.   Avoid unfair collection practices: Harassment is eliminated once debt negotiations take place.  
4.   Chances of lawsuit being brought upon you are dramatically decreased. Creditors are less inclined to bring you to court if they see you are making an honest effort to pay back the debt owed based on the settlement agreed upon.

To find a debt settlement service, contact http://debt-settlement-assistance.com/

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We are a debt relief company that is here to provide debt assistance for those suffering financial hardship. Please contact http://www.debt-settlement-assistance.com/ if you are interested in a debt settlement program