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      April 24, 2018

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Related Articles

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.

Greece Beats Bailout Targets Again as Debt-Relief Talks Loom

The European Commission confirmed on Monday that Greece beat its bailout targets again last year, strengthening the government's case against demands to bring forward additional tax measures originally scheduled to kick in starting 2020. Europe's most ...

Published:  Mon, 23 Apr 2018 05:20:00 GMT



Euro zone to link debt relief to sound future Greek policies

WASHINGTON (Reuters) - Euro zone creditors are working on a debt relief offer for Greece that would be an incentive for Athens not to backtrack on reforms from its three international bailouts and to continue to stick to prudent fiscal policy, senior EU ...

Published:  Sat, 21 Apr 2018 20:43:00 GMT



Greece's Creditors Close to Compromising on Debt

The aim is to have a final agreement in the early summer, but key differences among creditors on the scope and type of debt relief persist. The IMF would like to see wide-scale debt relief on all of Greece's euro-area loans --including those from other c ...

Published:  Sat, 21 Apr 2018 07:13:00 GMT



Behind bloody Gaza clashes, economic misery and piles of debt

He sold his house to cover $90,000 of his own debt and now owes rent to a landlord ... said the demonstrations have provided needed relief. "We are a little bit happier than before," Yousef said. "We can see something with this demonstration ...

Published:  Mon, 23 Apr 2018 12:19:00 GMT



How To Restore A Credit Score Shared By National Debt Relief

The credit score is one of the most important financial factors people need to look into and National Debt Relief helps consumers keep their score up. The article titled "5 Easy Steps To Help You Restore Your Credit Score" released April 16, 2018, shares ...

Published:  Sat, 21 Apr 2018 11:37:00 GMT



Refresco debt to be partially refinanced following acquisition by consortium of PAI and BCI through issue of ‚ā¨445 million of Senior Notes due 2026

Refresco now anticipates total run-rate synergies of ‚ā¨63 million in the first three years following the consolidation. The Group's Pro Forma Synergies Adjusted EBITDA for the year ended December 31, 2017 was ‚ā¨392.1 million and the Group's forma net ...

Published:  Mon, 23 Apr 2018 00:05:00 GMT



The Latest: IMF says trade tensions, debt threaten economy

The International Monetary Fund's policymaking committee says a strong world economy is threatened by increasing tension over trade and a heavy global debt load ... the organization's first ever national relief effort. "(Scott Pierce) was a big deal ...

Published:  Sat, 21 Apr 2018 10:32:00 GMT



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