Debt settlement is a debt relief strategy being adopted by many financial advisors on behalf of their companies or organization as a last resort instead of bankruptcy for their clients who are burdened by huge financial debt or otherwise as an escape route from indebtedness. Debt settlement is a debt relief method in which the company acting on behalf of a supposed debtor negotiates with the creditor for substantial debt reduction and subsequently pays off the renegotiated debt. Too many consumers in the United States of America who are not financially savvy the process of debt settlement is perceived to be shrouded in secrecy simply because majority can’t understand the process.
This article examines and lays out the process of debt settlement using a debt settlement company I.E. what a consumer need do if he has decided to go a debt settlement route.
Firstly, a consumer upon deciding to use a debt settlement company to negotiate debt freedom need to search and research for a veritable Debt settlement companies. This step is vital to his overall success as there are many unscrupulous individual operating debt settlement companies and promising debtors unrealistic result whilst fleecing them. However, There are many reputable debt settlement companies who are peopled by hardworking and honest financial advisors.
Secondly, now that you have found your choice of a debt settlement company, it is time to get started with the company on your journey to financial freedom. You will need to sit down with the company’s financial advisor/ counselor or representative and have a tête-à-tête meeting. The purpose of the discussion is for the debt settlement company to have a grasp of your current financial predicament (your debt profile).
In the next step of the process, the debt settlement company draws up a customized settlement program tailored specifically to your needs with the ultimate objective of making sure you gain back your financial freedom. A good debt settlement company will negotiate the best deal for you with your creditors and ensure your monthly payment is reduced substantially. For instance suppose you owe four creditors a total of $35,000, A debt settlement company can help negotiate with the creditor companies for substantial reduction (say $20,000 reduction) reducing your indebtedness to just $15,000 only which is then paid off by the company and you are required to open an escrow account with the settlement company where you make monthly payment of a lesser amount. This of cause is a win-win situation the more amount of dollars the settlement company gets to knock off your total debt the more the company equally get.
The aforementioned is the process a debtor wishing to use a debt settlement company in negotiating debt freedom from creditors will undergo. It is advantageous for individuals, small business owners and organizations to use a reputable debt settlement companies negotiate.
By using a debt settlement companies to negotiate on your behalf You actually pay less than you owe due to their financial expertise
By using a debt settlement to navigate the process, the entire process becomes less stressful.
Finally using a debt settlement company to negotiate debt settlement with creditors is a better more rewarding and less stressful option.