When you meet with your creditors and receive a collection agent’s letter, you also have the right to pay a settlement amount. A settlement amount is something negotiated by the settlement creditors and based on the amount you owe them. A settlement agent can waive the fee for the collection. That’s great because it means the settlement company won’t have to send you an invoice and another ‘shy’ letter to get your debt under control.
Sounds okay to me.
The settlement money is a small percentage of your payments from each creditor. In the first year of debt settlement, you pay $2000 in the amount of ‘debt settlement.’ The settlement amount is applied toward all outstanding balances on your credit cards. This can be a good option if you’re beginning to get desperate and you only make small payments on your credit cards and old debts.
Once you’ve settled all that money, you can start to make a monthly payment. This debt settlement may mean giving you extra money each month when you have to. You can use that money to cover excess out-of-pocket health costs, and other expenses of your mind like expenses that your older debts could never cover.
But that’s not all. You have to pay those extra costs every month. For the next twenty-five or so years, you’ll hear about a settlement company that lost their ‘first mortgage payment was only a few hundred dollars!’
Even if you won’t qualify for a ‘middle mortgage payment’ or even a middle-class lifestyle, it’s a lot better than not getting turned down for any type of loan.
And with average debt amounts shrinking faster than ever before, the truth is you can’t get by unless you take the tough step of debt settlement.
The best thing you can do is take the step and get back on your feet once again and start rebuilding your life again.
Debt Settlement – How You Can Eliminate Credit Card Debt
Your credit card balance may seem astronomical right? Well, in the past few years, a large chunk of the credit card debt has come due. The problem with this is that you should have no problem paying your balances off each and every month. When the balance is near 50% or more of its original balance, the interest rate changes and it becomes very difficult to get out of debt.
If you can get another credit card, like the most expensive item can, you’ll probably be able to negotiate better terms with your lender and get a lower interest rate. If your balance is less than half of the original, you have some options available and you can negotiate more grace period terms and lower rates with the lender. Since you can’t go into debt by default, you can repair your credit and stop paying bills to new credit card providers any sooner. For instance, if you owe $5,000 and a lender offers you 10 months of 0% interest with 3% APR, you might qualify for a 10 month low interest rate and save $300 or $400 (if you’re disciplined and get your debt to a manageable state).
If you have more than one credit card and you don’t have the money to pay for it all up front, you might consider setting up a personal refinancing with a broker. Unlike a credit card refinancing, however, you won’t have your credit balance reduced to take care of extra interest charges that may come due on your yearly income. Also, since refinancing is your bread-and-butter in life, you definitely don’t want to become a prey for debt collectors. Collectors don’t want the hassle of debt-collection, but the hassle is costing them money. The following are specific options that might be helpful in eliminating credit card debt:
If You Have Too Many Credit Cards
Many banks and other credit card companies offer so-called ‘no pre-approval” (buy now, pay later) offers whenever a buyer suggests closing their accounts. Think of it as buying cash and then dumping it in a bin. When you sell the cash to someone else (i.e., someone who hasn’t done anything illegal) and they close their account, they are required to give you their bank number and credit lines. These numbers can be deleted if you ever gave them illegal money (i.e., money given to minors, or promises of credit).
Debit Card Disputes
Debit card disputes have become a rage since the financial industry is involved in everything from taking money from the poor (brought up illegally) to threatening consumers with lawsuits. Why is it that the criminals keep striking! Banks, merchants and merchants (credit card companies, debit card firms etc.) can’t stand the consequences of their actions.