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      September 24, 2017

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Benefits of Debt Settlement

Debt Consolidation vs Debt Settlement

Debt Relief vs Bankruptcy

Pitfalls of Declaring Bankruptcy

Reasons for Debt Consolidation

The Bankruptcy Process Explained

What Is Debt Consolidation?

What Is Debt Negotiation?

What Is Debt Settlement?

What To Do if You're In Debt

 

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What Is Debt Settlement?

Living with debt can be a very stressful thing. Every ring of the phone could bring another call from a creditor, demanding money you donít have to give to them.

So what options do you have when the credit hounds are beating down your door?

Debt settlement Ė also commonly known as debt arbitration, debt negotiation and credit settlement Ė can be a good option for those who are struggling with debt. A caveat when it comes to debt settlement is that it can negatively affect a consumerís credit, so it should only be considered if a personís financial situation is extremely dire. However, if a personís credit report already is ruined due to failure to repay numerous creditors, the damage already is done and debt settlement will not make much of a difference.

Debt settlement is the final option before full bankruptcy. It is best to avoid full bankruptcy if possible, as it will mar your credit report for 7 to 10 years.

If you decide that the risks of debt settlement are worth the rewards, then you will need to know the best way to go about settling your debt with creditors.

The basic premise of debt settlement is getting a creditor to agree to be paid less than what you actually owe them, and to accept the lesser payment as payment in full. A good debt settlement agency will be able to help a client realize a 40 to 60 percent savings on their total debt.

Most debt settlement companies will establish what is known as a settlement deposit account. Clients will then be advised to stop making payments of any kind to creditors and instead put the money into the settlement account. The debt settlement company will then negotiate a deal on their clientís behalf, pulling money from the settlement account to make payments to creditors as needed.

It will generally take three to five years for the settlement process to be complete.

However, there are some cons to the debt settlement process. Aside from your credit report being negatively affected, creditors are not required to accept any settlement offer and can still choose to turn you over for collections. Even if they do accept the offer, interest and penalties will continue to accrue the entire time the negotiation process is underway.

Now that weíve discussed the pros and cons of debt settlement, letís review how to find a reputable debt settlement agency.

The first step is to check the reputation of the agency on consumer websites such as the Better Business Bureau. If the agency you are considering using has very many unresolved complaints against them, it should serve as a red flag.

Consumers also inquire as to whether the company has a solid working relationship with creditors and collection agencies. Prior established relationships will go a long way in getting creditors to accept debt settlement agreements.

Lastly, make sure the company provides full disclosure of its fee structures and how all money it collects from you will be used.

The Latest: Antigua pleads for debt relief after Irma

UNITED NATIONS (AP) - The latest on the U.N. General Assembly meeting (all times local): 7:40 p.m. Antigua and Barbuda's prime minister is pleading for debt relief to help rebuild from Hurricane Irma, which decimated the tiny island of Barbuda and forced ...

Published:  Thu, 21 Sep 2017 15:51:00 GMT



Damaged by Hurricanes and "Vulture" Capitalism, Caribbean Islands Plead for Debt Relief

Last week, just days after Hurricane Irma thrashed through the Caribbean with record-high winds, the Catholic bishop of the island nation of Dominica sent a letter to the managing director of the International Monetary Fund (IMF). Bishop Gabriel Malzaire ...

Published:  Wed, 20 Sep 2017 01:00:00 GMT



Three Must-Have Debt Relief Tips

GREENSBORO, N.C. -- It's so easy and fun spending money, but boy is it hard to get out of debt! It takes a lot of hard work! Money expert, Ja'Net Adams wrote the book, Debt Sucks: Everyone's Guide To Winning With Money So They Can Live Their Dreams.

Published:  Wed, 20 Sep 2017 07:16:00 GMT



Thousands of private student loan borrowers will get debt relief

NEW YORK (CNNMoney) - The nightmare is almost over for thousands of people who faced illegal student debt collections lawsuits. The Consumer Financial Protection Bureau took action Monday against National Collegiate Student Loan Trusts, which owns more ...

Published:  Tue, 19 Sep 2017 07:27:00 GMT



Greece's Papadimitriou on Bailout, Debt Relief, NPLs - Presented by: The Aol. On Network

Sep.21 -- Greek Minister of Economy and Development Dimitri Papadimitriou discusses the Greek bailout, the timeline for debt relief, non-performing loans and his outlook for the economy. He speaks on "Bloomberg Daybreak: Europe."

Published:  Thu, 21 Sep 2017 00:36:00 GMT



Letters from Cardinal Daniel DiNardo, USCCB president, on debt relief

amenable to this reasonable request. At this hour of need, we pray that God may inspire generosity in people around the world, that those affected may be aided in their efforts to rebuild their lives. We also pray that our bonds of solidarity as one Church ...

Published:  Fri, 22 Sep 2017 13:29:00 GMT



Debt Relief & Consumer Lawyers

Do you have debt problems and are wondering if you should get an attorney to help Below you'll find articles on whether you should hire a debt relief lawyer to help with wage garnishment, car repossession, student loan issues, debt collection lawsuits ...

Published:  Tue, 19 Sep 2017 17:56:00 GMT



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