 |
|
|
|
|
 |
| To enter our free financial information center |
|
 |
|
|
|
|
|
|
|
 |
Do you know?
Why not have a free copy of your credit report available when you call us about debt reduction?
We'll negotiate your debt and show you how to get
a free credit report. Click here for details!
|
|
|
|
|
|
| Debt Settlement |
|
Debt settlement or debt arbitration is a legal process used by both people in debt and their creditors to
negotiate a settlement of an existing legal debt. Typically the debt is reduced by up to fifty percent.
The legal terminology for this process is called an "Accord and Satisfaction" since you are really reaching
an accord or new agreement and then paying or satisfying it. The legal terminology for this process if the
debt is tax debt is called an "Offer in Compromise." Any person owing credit card debt, or any other debt
for that matter, has the legal right to contact and negotiate with the creditors; however, a proper and fair
debt settlement requires expert skills, such as those possessed by the debt counselors at the
Consumer Debt Group, to convince the creditors to reduce the ultimate debt amount
because it would be in their best interest to get something from the borrower instead of forcing the
borrower into bankruptcy.
|
|
|
Debt settlement is the better alternative to bankruptcy,
debt consolidation or credit counseling to amicably settle the debts that
may arise due to credit card use. Many people go for bankruptcy which should be avoided because in reality bankruptcy stays
on your credit history for up to ten long years, and will have a negative impact on your attempt to get employment or a home loan.
Moreover, bankruptcy does not discharge claims for alimony or child support, debts for substantial purchases made
shortly before the bankruptcy filing, government insured student loans, and taxes that are less than three years old.
There are various companies, like the Consumer Debt Group,
which specialize in debt settlements, and their prime purpose is to assess the financial status of the debtor and inform the
creditors accordingly, thus acting as a liaison with the creditors.
|
|
|
Debt Settlement Companies should clearly be consulted by debtors in cases where creditors are unduly harassing debtors.
Debt settlement companies usually correspond with creditors on debtors' behalf and assist debtors by establishing a monthly
saving goal so as to start investing only to raise money for the settlement of the debts. Suppose a person has credit card debt
of $30,100. The amount that is to be payable through the debt settlement program is a monthly amount of $550 for 36 months,
thus making the total amount paid to $18297 which is approximately 60.1% of the original debt.
|
|
|
As earlier stated debt settlement can almost always be done with proper negotiation with the creditors. This can be done
on a direct basis or by hiring a third party. It is always a better option to have an expert, like the Consumer Debt Group,
contact the creditors personally rather than trying to do it yourself.
|
|
|
|
Budgeting