Debt Settlement Questions and Correct Answers (part 2)

Debt settlement is seemingly the preferred method of settling ones debt however, you should first know the debt settlement questions and correct answers. Debt settlement programs definitely work. Debts settle and money is saved. Debt calculator.
By: Rich Preisig
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Oct. 10, 2011 - PRLog -- Question 6: Does the debt settlement company settle my debts, negotiate my interest rates as well, deal with the fees and penalties?  

Yes, when you work with a credible debt settlement attorney program they will negotiate your debts, fees and or penalties and the compounding interest.  It's their job to get you the lowest settlement possible. If you type into Google, settle my debt, debt settlement calculator, erase my debt and a variety of other debt settlement blogs, you’ll notice one commonality; they are all rated as the best settle my debt companies nationwide.  

Question 7:  Is Debt Negotiation Only Good For Credit Card Debt?

No!  If that were the case, debt settlement would certainly not be as attractive to consumers who want to be in a program where all debts settle. This includes credit cards, medical bills, legal invoices, retail/department store accounts, collections and personal loans. There are some debts that can't be settled which include IRS tax liens, federal student loans, child support, alimony, mortgages, auto loans and any type of secured debt.

Question 8:  What Is The Difference Between Debt Settlement & Debt Consolidation?

Debt settlement is reducing the amount of debt owed by negotiating a lower total amount with your creditors. On the other hand, debt consolidation transfers your full debt amount to another loan. This does not reduce what you owe, but reduces your interest rates and minimum payments.

This can be more costly and leave you and your finances wide open to some serious issues. Additionally, debt consolidation often claim to be "non-profit", but they are often funded by and working for your creditors, while charging you fees for their services. You may want to consider debt settlement alternatives.

Question 9:  What can debt settlement programs do for me?

Attorney based debt settlement programs can be very powerful when it comes to dealing with your creditors on your behalf.  In fact, statistics show that a debt settlement consumer can settle all of their credit card debt, medical debts, etc. and only having to pay 40-50% of what they owe. A debt settlement law firm will directly provide these services to you.

Instead of worrying about “bankruptcy or debt settlement, you can set up a debt settlement program that is based on you setting money aside and letting the debt relief attorneys negotiate the best settlement for you and your situation. You continue to put funds in your settlement account and the law firm will send settlement offers to your creditors. As long as you continue to make your monthly payments into your debt account, you should have all of your debts settled over a period of twelve to forty eight months.

Question 10:  How long does it take for my debts to be settled and done with?

The amount of time it takes to pay off each credit card account varies. Many factors are at play in determining how long it will take. The outstanding balance, number of accounts that are being settled and the amount you can pay towards your accounts monthly are some of the factors. A debt settlement affiliate will design your program specifically for you and it's based on how our debt negotiation specialists can help you best upon reviewing your financial situation.

Question 11:  If I enroll with your debt settlement company, how will it affect my credit?

Your credit score will drop considerably, as you’ve stopped making payments to your creditors. Unpaid debts or debts that are settled for less than the full amount you owe can also cause a mark on your credit report. A settled account will improve your debt to income ratio and should reflect positively on your credit record over time. After you complete the best settle my debt program, you should consult with a third party credit restoration group to get rid of any inaccuracies on your credit report.

Question 12:  How much does debt settlement cost?

Enrolling in a debt settlement program is certainly beneficial for most people however, there is a fee paid to the debt settlement attorneys who are doing the work to settle your debt with your creditors.  Debt settlement groups will set up payment plans that are custom tailored to each consumer and the payments you make each month depend on your circumstance and debt accrued.

The service fees for debt reduction services vary on the amount you owe and how long you're in the debt settlement program. Before you enter the relief program, you’re given an estimate of what your fees will be over the course of the program period. For the most part, the fees the law firms charge are generally fair in comparison to how much you will save off your current balances overall.

Debt settlement alternatives may come into play like bankruptcy or just not making a decision because you feel like a deer staring into the head lights.  If you put your financial options into perspective, you could opt to pay any and all recurring interest charges currently applicable to your credit card accounts and other debts every month for the distant future, not to mention any applicable late fees and penalties you may face. This is why enrolling in a debt settlement program is preferred to bankruptcy.

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Rich Preisig writes anything SEO related, so that small and medium size companies can find their Site on the first page on Google. "If you're not on page one on Google, you have less than an 8% chance of being found on page 2," states Rich Preisig.
Rich Preisig, Richard Preisig PRs
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