Our Credit Card Debt Settlement Program
What you need to know about debts and how to settle them
It is not unusual to make the mistake of taking an uncalculated loan. With soaring interest rates, it is also not unusual for your loan to take the shape of
a bad debt. But if your loan takes the shape of a bad debt, it’s time to take things into perspective and consider what must be done. Debts are a source of
constant worry for many people but through a debt settle program, this can change.
What is debt settlement?
Debt settlement is a program offered by financial agencies to make paying your debts less stressful. These programs help you meet your monthly payments and
get you out of debt sooner than you would have on your own. A
debt settlement program also consolidates all your bills so you pay a
single monthly bill instead of dealing with different creditors all at the same time. It’s a stress-free way of ensuring that you pay all your debts in a shorter
amount of time while letting your credit score shine.
How does debt settlement work?
Debt settlement works through a negotiation process. It is through this process that you can acquire a significant sum of discount on the total outstanding.
The negotiation process is done in a formal way and the repayment terms, as well as the repayment amount, are documented according to the mutual settlements
done by both parties. There are various debt settlement programs available and you can choose which one’s the right program for the type of debt you have.
Step-by-step process
Step 1
Shop around and go for no-obligation free debt counseling. You can contact a
debt relief company and attend a free counseling session with their consultant.
The consultant analyzes your financial situation and completes an income vs. expenditure review in order to find out how much you can pay towards your monthly
bills.
Step 2
Enroll yourself in a debt consolidation program. If after assessing your financial situation the consultant concludes that a
consolidation program is the best solution for you, he/she will send you the documents you need to sign. The consultant will also provide you with details on the fees required
and a power of attorney form which will allow him/her to talk to your creditors on your behalf.
Step 3
The handles creditor calls. As soon as you receive the documents, the consultant contacts you in order to answer any questions before you sign the documents.
Once you sign and return the documents to the consultant, you can start referring your creditors to the debt consolidation company.
Step 4
The consultant negotiates on your behalf. He/she will then contact your creditors or collection agency and proposes a payment plan that you can afford.
He/she will also negotiate with them to reduce your interest rates and monthly payments. The consultant will then request your creditors to freeze or
reduce extra charges and late fees on your accounts so that you don’t have to pay more than the actual debt.
Step 5
You send in monthly payment to the company. Your monthly payment should be sent to the consolidation company which then distributes it amongst your creditors
or collection agency. This way, multiple bills are consolidated into a single monthly payment. You don’t have to worry about handling several creditors at a time.
Step 6
Your creditors receive the payment. Within a few days of receiving your payment, the company then forwards it to your creditors. You will then receive creditor
statements as a confirmation of receipt of your payment.
What to expect when enrolling into a debt settlement program
Although the promise on less stress may vary from person to person, enrolling into a debt settlement program has its advantages. Paying for your multiple debts
is done in a streamlined way and before you know it, you’ve already paid off all your debts. There are a lot of agencies offering debt consolidation programs
and what they offer may sound too good to be true. And more often than not, this is the case because they are. Be aware that some companies offer debt settlement
that are fly-by-night scams, eager to take big upfront fees and then disappear while others are inexperienced to negotiate effective deals. So be sure to look
around and that the agency you contact is genuine and dedicated to help you.
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