What is Debt Settlement?
Also known as Debt Negotiation, Debt Settlement is an aggressive strategy to debt reduction, which may be appropriate for debtors with a serious amount of debt or who are considering bankruptcy. A debt settlement company negotiates with the creditors to settle the debt for a lower amount than owed, as the debtor saves his/her money for a lump-sum settlement payment. After the debt is settled, the creditor will likely send a letter stating the debt obligation was fulfilled, and should then report to the credit bureaus that the debt has been satisfied.
Creditors are motivated to negotiate the debt simply because when a debtor is under serious financial strain and chooses bankruptcy, the creditor may receive little or no financial reimbursement through the court proceedings. Debt Settlementmay offer a viable substitute that is more likely to produce a win-win situation for both creditor and debtor.
Do I Qualify?
Not sure if Debt Settlement is right for you? Ask yourself these questions to determine whether Debt Settlement may be your best option to escape from mounting debt:
· Are your monthly expenses exceeding your earned income?
· Are you using your credit cards to get by so you can afford to live?
· Are you considering Bankruptcy as an option?
· Are your credit cards reaching the limit?
· Are you receiving collection letters or phone calls from creditors?
· Have you used all of your available resources to keep up with payments?
· Are your minimum payments becoming a struggle?
· Has a recent event caused you to go into default?
If you answered Yes to any of these questions, you could be experiencing serious financial trouble. Call us today!
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