Too much debt? You may need debt settlement help.
You've done your best to keep up with all of the credit card or unsecured debt you have, but there is just no way to keep up with the payments any longer.
After responding to an ad on TV, you find out that you cannot qualify for a Debt Management Program because the monthly payment is too large.
Rather than filing for bankruptcy, you may want to consider debt settlement help.
Debt Settlement is a program designed for those who are:
Facing severe financial hardship due to circumstances beyond their control. Unemployment, rising cost of living to those on a fixed budget, divorce, disability...situations that can happen to anyone.
After your accounts have been past due for 120-180 days, most creditors will consider a settlement on the account.
In fact, you may receive a letter or statement offering a 75% settlement if you can send the entire amount by the end of the month. Of course, if you had that kind of money, you probably would not behind in the first place. What can you do?
If you have 40%-50% that could be paid in a lump sum (most likely, you don't), then play hard-ball and offer 40%. If you have a lump sum, you should be able to get the account settled for a much lower amount that 75%.
If you do not have the lump sum needed, then counter with a term-payment settlement of what your budget will allow.
Here's an example:
You have a credit card with a balance of $8,000. It has been charged off and is with XYZ Collections.
You don't have $4,000 (50%), but you could put $1,000 down and then make $300/month payments on the balance of $3000, for 10 months.
The agent will most likely say that they cannot go beyond 3 or 6 months.
Tell them you have no more funds and if the offer is rejected, then you would most likely have to file for bankruptcy protection.
If the answer is still no, then hang up. You may get a call right away with a counter. If you do...Hold firm!
Wait about 3-4 days (ignoring their calls) and then call back and hold firm with your offer. You may have to give a little (12 months of $300 instead of 10 for a total of $4600 total), but you still have a decent settlement.
If the agent agrees, GET THE AGREEMENT IN WRITING! Never send or authorize a settlement payment without having the written agreement in hand!
Finally, don't be late on your payments! There will be a phrase in the settlement agreement stating that any missed or late payments will VOID the agreement.
As you can see, it is possible to settle debts with your creditors on your own. However, if you are uncomfortable with this proccess, there are Debt Settlement companies out there to do it for you. Since you will have to pay a fee for their services, it may cost you a little bit more. However, you will still save thousands and have an experienced debt settlment professional doing the negotiating for you. Either way, Debt Settlement is a great option!