Debt settlement is a valuable solution for people who are struggling to repay their debts. It’s important to understand how settlement works and what to expect when negotiating terms with your creditors.
How does debt settlement help?
Debt settlement is the process of negotiating manageable debt repayment terms when your financial circumstances make it hard to keep up with current payments. This process is intended for consumers experiencing hardship such as loss of employment, reduction of income, medical emergencies, divorce, and overspending.
Debt Settlement can help you:
- Lower your total debt balance
- Help you pay of your debts in a much faster time frame
- Avoid bankruptcy by offering a manageable repayment plan
This type of debt resolution can be incredibly helpful for debtors, but it can also be valuable for creditors too. When a debtor is experiencing hardship and is unable to repay, it is beneficial for a creditor to accept a reduced amount of the balance owed. Debt collection can often be a costly and lengthy process for the creditor.
Keep in mind however, that creditors are not obligated to agree to debt settlement solutions if they believe that a debtor is financially capable of repaying a debt. In this case they are unlikely to offer any debt relief. The government encourages creditors to consider debt settlement solutions, but it does not force them to accept any such solutions.
When you speak to one of our certified debt specialists, we will analyze your situation to see if we can help. We implement a strategy that leverages our extensive industry experience and relationships with creditors to reach favorable terms for all parties involved.
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