Need help with debt settlement? Not being able to pay your obligations and having creditors breathing down your neck can be a hassle. Debt settlement is a popular choice if you want to straighten out your debts without paying the total amount if you can’t pay everything in full.
But is debt settlement the way to go? What is debt settlement? When you offer your creditor a lump sum payment with a request that a big chunk, as much as 50%, be removed from the principal, that is debt settlement.
While it is true that your creditor can sue you over unpaid debts, when it comes to debt settlement, you need to stop paying monthly to prove that you can no longer handle the repayment and thus qualify to apply for debt settlement. Doing so will incur late fees and charges and damage your credit score. Delayed payments will be reflected on your credit report for up to seven years.
When you apply for help with debt settlement, will your creditors automatically agree to your offer of debt reduction? No. It doesn’t matter if you are working with a reputable debt settlement or doing this on your own; your creditors are sovereign – they can choose to agree with your offer or not. Expect to receive phone calls from debt collectors when your debt becomes delinquent. The possibility of getting sued will always be there, especially if you owe them a significant amount of money. But if the settlement is handled correctly, there is a big chance that your creditor will agree to your terms or close to it, as debt settlement is better than you filing for bankruptcy.
If the above scenario is a reality for you, seek help with debt settlement as soon as possible and start your journey towards a financially healthy life.
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