Dealing with Debt Collection Companies Effectively
Debt settlement with creditors or debt collection companies is a manner by which a debtor agrees to settle a liability by paying a portion of the obligation in exchange for a paid-in-full statement. Securing the services of a debt management company is the same as securing a settlement agreement.
Debt resolution involves communicating with your individual creditors and extending an offer of reduced repayment and thereby avoiding bankruptcy.
If your case has been assigned to a debt collection company, you will be dealing with a third party collector rather than your original creditor. But the procedure for financial resolution is quite similar.
You should agree to pay a reduced amount to your creditors, and they will accept the reduced amount as full payment when you use a settlement agreement.
Many times debt collectors will accept a settlement as low as 25 cents on the dollar! As a result, you may be able to eliminate your debt in only 2-4 years. Your monthly payment will also be reduced. Debt settlement companies may stop the creditor harassment by sending the debt collectors