Debt Settlement Services-The Quickest Method of Debt Elimination
Debt settlement services offer an option for people who carry an excessive amount of unsecured debt, or are very delinquent on their bills. These companies may make it possible for you to pay-off your debt for a fraction of what you owe, and only 2-4 years to pay it off.
However, when working with a debt management company, you should be very patient. The negotiation between your creditors and debt settlement agents will take some time but the wait is worthwhile.
These settlement firms usually, but not always, work with those who are three to six months behind on their bill payments. You should get this type of financial assistance if you have failed to complete a debt consolidation program such as Consumer Credit Counseling Service.
When you choose to enroll in a debt settlement program, the debt management firm becomes the point of contact for your creditors. Their role is to negotiate reductions in the total amount of the financial obligations that you owe. Not only does this effort save money for you, but also ensures that your creditor will get at least a portion of the debt paid, usually about 50 - 75 percent of the amount owed.
Depending on your situation, the debt settlement company can negotiate for a reduced amount of debt. They can negotiate to settle for lower payments as well. Regardless of what avenue is taken for debt settlement, your credit reports will read "settled in full" instead of "paid in full." This implies that you were unable to pay the full amount, but negotiated a smaller payment.
Deciding to go with a debt settlement company still remains a better option than filing for bankruptcy, mainly because bankruptcy is so severe and it