Debt settlement is an effective alternative for people struggling to cope with mounting debt. By getting help of a debt settlement program, you can reduce your collection calls to a great extent and moreover, avoid bankruptcy. This is one of the key debt resolution services where professional debt negotiators deal with creditors or collection agencies, and help individuals pay off debt easily.
Debt settlement is a process wherein creditors or collection companies accept a sum lesser than the original amount from the debtor, and regards it as the full payment.
For consumers who are overwhelmed by crushing debt, debt settlement – the process of negotiation with creditors to reduce debt balances – can come as a huge relief. Overall, everyone gets what they want: the consumer pays off the debt and is relieved of financial burdens and the creditor gets the moneys owed.
The decision to enter into a debt settlement plan is relatively easy for anyone with overwhelming debt.
Once all of your finances are outlined, the debt settlement company and the consumer work together to draw up a tentative plan of action. Consumers are asked to put money aside monthly in a special bank account for savings. Then we start negotiation with your creditors one by one, either in lump sum or in term settlements. We usually prefer term settlements as it reduces the risk of any legal action that the creditor can take to recover the debt from our customers.
As an individual, you don’t have a lot of bargaining power. But we have a large portfolio of clients and can use that as leverage to get very good settlement percentages for our customers. We have existing relationships with almost all creditors and collections companies, which again helps us in getting good settlement percentages for our customers.