March 23, 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


Top Consumer Reviews Articles provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

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.

Americans Look for Relief as Consumer Debt Levels Continue to Break Records

Consolidated Credit sees a 30% increase in calls as more Americans look for solutions to record-high debt levels FORT LAUDERDALE, Fla., March 22, 2018 /PRNewswire/ -- The beginning of each year is usually a busy time for consumer credit counselors as ...

Published:  Thu, 22 Mar 2018 05:09:00 GMT

5 Reasons Debt Relief Programs Cause More Pain Than Relief

You've seen the ads. "Hounded by creditors More than $10,000 in debt Call us to reduce your debt, lower your monthly payments and be debt free in 24 months." Gosh that sounds great, where do I sign up Obviously, per the article title, debt relief ...

Published:  Mon, 19 Mar 2018 13:12:00 GMT

Inexpensive And Enjoyable Hobbies Listed Down By National Debt Relief

There are a number of cheap yet enjoyable hobbies consumers can take up during their spare time and National Debt Relief shares a great list to choose from. The article titled "8 Fun Hobbies You Can Do on the Cheap" released March 21, 2018, helps ...

Published:  Thu, 22 Mar 2018 09:44:00 GMT

Lawsuit calls for Education Department to end partial student debt relief

March 19 (UPI) --A legal services clinic called on a federal judge to block the U.S. Education Department from using Social Security data to deny loan discharges to defrauded students. Harvard University's Project on Predatory Student Lending filed motion ...

Published:  Mon, 19 Mar 2018 21:09:00 GMT

Former Corinthian College students continue to be denied full debt relief

Amy Martyn is a writer and investigative reporter now based in San Diego by way of Tijuana, BC, Dallas, TX and Los Angeles, CA. She primarily writes about how consumers, taxpayers and businesses are affected by corporate and government policies. Read Full ...

Published:  Tue, 20 Mar 2018 11:42:00 GMT

LePage supports bill to provide debt relief for students to retain young Mainers

AUGUSTA, Maine. (WABI) - Maine ranks as the eighth highest state in the country in terms of student debt, that according to a national report. The LePage administration has brought forward a bill to provide debt relief for students in an attempt to keep ...

Published:  Thu, 15 Mar 2018 15:00:00 GMT

Caribbean Religious Leaders Call for Debt Relief in Face of Disasters

From Grenada to Saint Lucia, religious leaders are calling for processes to provide debt relief in the face of natural disasters. From Grenada to Saint Lucia, religious leaders are calling for processes to provide debt relief in the face of natural disasters.

Published:  Fri, 16 Mar 2018 07:44:00 GMT

Debt Consolidation Credit Card Debt Relief An Option For Many Today

As Economy Picks Up Speed, Americans Pick Up Pace of Unloading Personal Debt LOS ANGELES, CA, March 05, 2018 /24-7PressRelease/ -- Debt consolidation and credit card debt relief programs have become increasingly sought after and used by more Americans as ...

Published:  Mon, 05 Mar 2018 00:07:52 GMT

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