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Resolve your debts by debt settlement

The last 30 years has seen an exponential rise in the growth of credit card industry. This has also led to the massive increase in consumer debt across the world. There are many options of debt relief available, viz. debt settlement, debt consolidation, debt negotiation etc. Let’s take a closer look at debt settlement, the most preferred option of resolving debts today.

How debt settlement works?

Debt settlement programs help both the creditor and the loan taker mutually if done in a proper way.  In the process of debt settlement, the creditor accepts a sum lesser than what the loan taker actually owes him.  The creditor generally agrees to this compromised payment because he will actually stand to lose all the money if the customer files bankruptcy. If you are not sure about settling your debts yourself, you can take help from a debt settlement lawyer. The lawyer will negotiate with the creditors on your behalf to lower your payments and reach an amount acceptable to them. A skilled lawyer can reduce your payments by 40%-60%.

Duration

The duration of the process of debt settlement depends upon the total number of debts, the kind of debt, the total amount of the outstanding debt and the amount the debtor can afford to settle. Generally, settlement cases take 15 to 36 months to complete. The more you can pay, the earlier your debts get resolved.

Benefits

Debt settlement helps you in the following ways:

1) You do not have to pay the total owed amount
2) Your debts are cleared much faster
3) You avoid filing bankruptcy
4) You get rid of creditor harassment.

Pitfalls

But remember that debt settlement damages your credit score when you first enroll. However, this damage is not permanent and starts to recover as your debts get settled. You have to take care to stay away from scam debt settlement companies. Ensure that the company is a genuine one registered with the BBB.

How can you avoid debt settlement scams?

Debt settlement companies have mushroomed all over the world promising you to pull you out of your hefty debts easily. In such a scenario, many people are doubtful of the authenticity of their services because more often than not, most of these companies turn out to be scams. Sure, there are genuine settlement companies out there to help you out, but you have to be careful before enrolling yourself with their services.

If you want to be sure that you are not falling prey to a scam debt settlement company, then you just have to keep a few simple points in mind. Read on to know.

1) Most of the scam companies would misinform you about the services that they offer. They would ask you to sign up with them instantly and then they will put you under extremely long programs to clear your debts. A genuine debt settlement company would study your financial situation properly and then decide the best program for you.

2) One of the most important points that you should keep in mind is that fraud debt settlement companies will ask you to sign up with them over the phone without any enrollment fee. In case you enroll with them, you will likely fall into more debt because they will squeeze out more money from you but will do nothing to alleviate your debt problems.

3) If you see that the company is not responding to your questions, then you know that you have to bid them goodbye. They do this because they are obviously trying to hide something from you. On the other hand, a good debt settlement company would always want you to be informed before you sign up. Find out every minute detail possible about the company.

4) Ask for references. Talk to the previous clients of the company to know how their experience was. Do not sign up with the company until you read all their terms and conditions properly, including the fine print.

5) Check with the Better Business Bureau (BBB). A business registered with them would be a genuine one. If the company is registered with them, you can safely sign up with that company.

So, do your homework properly and you will reduce your chances of getting scammed. Do your own investigation in order to make sure that you choose the right debt settlement company for yourself.