Tips for Debt Settlement Success In Illinois

Date Posted: December 27, 2023
By: Maggie Marques

Here are tips for debt settlement success in Illinois to help you get out of debt successfully. What is debt settlement? Debt settlement is a process that will allow you to pay less than the amount you owe your creditors.  What are the kinds of debts that you can apply for settlement?  Here are some:

  • Personal loans
  • Credit card bills
  • Medical bills
What is debt settlement?

Debt settlement is one of the three main kinds of debt relief programs you can find in Illinois. Aside from settlement, you can consider debt consolidation and bankruptcy.

There is a statute of limitations for debts in Illinois. So, to increase your chances of successfully settling your debts, here are tips for debt settlement success in Illinois:
  1. Before making any payments, double-check the statute limitations. Remember that creditors have a time limit to sue you for an old debt. So check the statute of limitations for making payments because you might be sued for an old debt.
  2. Find a reputable debt settlement company. The good news is that Illinois has a Debt Settlement Consumer Protection Act. It has rigid guidelines that will help consumers and protect them from unscrupulous settlement companies. One of the most critical consumer protections this has is that it limits upfront fees to $50. Settlement fees are capped at 15% of the amount saved by the consumer. The law also restricts settlement companies from receiving any settlement fee if the consumer can’t save.
  3. Negotiate with your creditors.  It is essential to negotiate with your creditors. The first thing to do is to file a response to the lawsuit. Then, send them a settlement offer to start the negotiations. Lastly, ensure that the settlement agreement is in writing to ensure that both parties honor the deal.
More Tips for Debt Settlement Success In Illinois

If you can’t repay your debt in full, try to settle the debt for a percentage of what you owe. Debt settlement offers a lump sum in exchange for dismissing legal actions.  Settlement is a good option if you are struggling. But first, understand how it works and find a reputable debt settlement company to help you increase your success rate in getting your settlement approved.

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