Debt Settlement Basics
The free market is just that, the freedom to negotiate. In business one great truth is that everything is negotiable. Even in large retail locations, customers negotiate the price of goods all the time. Most people view this as Price Matching. Negotiations must have two parts, the request and the offer. For example, If you lower your price for this item to X, and match your competition, I would be willing to give you the business for this item instead of your competition. In debt settlement it works basically the same way. You request the creditor to lower your obligation for the offer of paying the balance in full in a reasonable period of time. Depending on the length of the outstanding balance creditors will consider this offer. They of course want to recover as much money as possible.
When it comes to debt and your credit card balances, your opportunity to reduce your debt is very palpable. With the proper assistance and consulting from Debt Settlement US, you can cut your balances by 50 to 70%.
Debt Settlement is the process of negotiating your debt by offering a large, one time payment or large monthly payments toward the balance. In return the creditor will forgive the remaining debt you have accrued with them.
For example, someone who owes $50,000 in a single credit card or line of credit can approach their creditor or credit card company and offer them a one-time payment of $30,000. Under some circumstances the forgiveness amount might even be higher. If the proper argument / offer is made to the creditor they are willing to recoup as much as possible.
Things to Consider
While saving 50 to 70% on your balance might sound amazing, you need to understand the downside to debt settlement. Debt Settlement usually requires you to come up with a substantial cash payment or large monthly payments for a short period of time. Due to the fact that most people with debt don’t have substantial amounts of money on hand, or in their banks, they need to understand where the funds will come from. Bad choices at this point might result in a repeat of the last situation.
It is key to understand that debt settlements will usually show up on your credit report lowering your score and hurting your ability for affordable credit in the near future.
That is why it is very important to know all your options and seek professional assistance from Debt Settlement US. We will help you understand your situation and develop a plan to maximize the benefit.