Still checking your debt problem? Maybe it's time for us to evaluate your problem.
How To Get Out of Debt Help
We Can Get You Out of Debt In Short Time
.com
Get your FREE Debt Analysis Online in 30 Seconds!
* One Of The Nation's Top Debt Help
Companies Based On Years In Business,
Clients Served, And Overall Customer
Satisfaction.
* Written Guarantee.
* 100% Confidential.
* Save Up To 70% On Your Unsecured Debts.
* Achieve Financial Peace of Mind.
""I completely endorse CuraDebt's Debt Negotiation Program. They have helped my parents and me eliminate over $63k in credit card and medical bills. - M.C. of Florida"
9 Questions You Need To Ask Yourself Before Pursuing Debt Settlement
John Janney
It's no secret that Americans are struggling financially. Massive layoffs, inflation, unaffordable healthcare, skyrocketing gas prices and hiked-up interest rates on credit card accounts are plunging millions of consumers to the brink of bankruptcy. However, many of the would-be bankrupt are turning to a less drastic solution to their problems: settlement.
A Super-Short History of Settlement
Debt settlement is nothing new. It's simply an agreement between two parties to settle a for less than the outstanding balance. Lenders have been doing this for hundreds of years, but the modern American banking industry started formalizing the practice after many of their customers starting falling behind in the late 1980s and early 1990s. These banks setup separate departments with specially-trained negotiators who contacted delinquent customers and offered them a lower pay-off amount to fully settle an overdue account.
Shortly afterward, entrepreneurs set up companies to help negotiate the best possible terms for financially distressed consumers trying to settle their debts. This marked the birth of the modern settlement industry. Thousands upon thousands of consumers flocked to settlement websites seeking more information and enrollment into a settlement program and settlement's popularity as a bankruptcy alternative continues to grow.
There's good reason for settlement's popularity. For some, it can be the fastest and least expensive form of relief besides bankruptcy. According to most settlement company and information websites, a consumer may be able to settle all settlement-eligible debts for less than the full outstanding balance in less than three years.
Is Settlement Right For You?
If you are struggling with your finances and looking down the cold barrel of bankruptcy, you should investigate settlement. However, settlement is not for everyone. So, you should try to fully understand how it works as well as the benefits and drawbacks of this relief option before enrolling into a settlement program or attempting to negotiate your own settlements. Here are some questions to ask yourself to help you gain this understanding.
1. Can I repay my debts?
If you can repay all of your debts in full, then you should. settlement is only meant for people who are financially unable to fully repay their debts but who might be able to repay debts if the outstanding balances are reduced.
2. Am I experiencing a financial difficulty?
Not wanting to repay your debts is not a good reason to enter into negotiations and creditors often take financial hardships into consideration during negotiations. These hardships can include unemployment, loss of income, unexpected medical bills, illness or death in the family and divorce.
3. What kind of debts do I need to settle?
Debt settlement only works for unsecured debt, such as credit card accounts, medical debts and maybe some department store cards and other personal debts. Lenders historically do not negotiate or settle secured debts, such as home loans, automobile loans, student loans and other loans secured with collateral.
4. Can I save up and set aside some money each month?
While unable to fully repay your debts, you should be financially able to at least pay back a portion of your debts if you can save up and set aside some money each month. This amount should be less than the minimum monthly payments required by your creditors (if you can comfortable pay your minimum monthly payments, then settlement may not be right for you). However, even saving up and consistently setting aside this smaller amount each month will add up to a sum that you may be able to offer as a compromised payoff to settle a debt. It may take months, but if you are consistent and patient the funds will build up.
5. Can you function with a budget?
Being able to save up and set aside funds to pay off settlements will require you to operate within a tight budget. If you are not financially disciplined, then you should start learning how to be. Pursuing settlement is an honorable way to resolve a tough financial situation, but it does require discipline -- and this means budgeting.
6. How much do I care about credit?
The settlement process can be damaging to your credit. This is because the process results in missed payments and accounts often go into charge-off before being settled. If you prize your credit score more than being debt-free, then you should consider getting a second or third job so you can fully repay all your debts and skip the settlement option (assuming you can keep this up for several years until all your debts are paid). Otherwise, be aware that negative marks can remain on your credit report for up to seven years (except for bankruptcy, which can stay on your credit report for up to ten years). However, as the negative mark gets older, it has less impact on your credit score.
7. Do I want to avoid bankruptcy?
Debt settlement is really about helping you repay your debts based on your limited financial ability and keeping you out of bankruptcy, assuming you want to avoid bankruptcy. This is important, because some people don't mind the 10-year stain on their credit or the fact that they won't be able to file Chapter 7 bankruptcy again for another eight years. Some people may not have a house they are trying desperately to save or don't have to deal with the new provisions of the bankruptcy law that are designed to keep some people from filing bankruptcy. However, if the thought of filing bankruptcy doesn't sit well with you and you are struggling to get by, then settlement might be just what you need.
8. Can I separate myself emotionally from my debts?
If you pursue settlement, your creditors are not going to be happy with you because they want you to pay all of your debt, plus interest, plus fees and plus whatever other finance charges they can dream up. You might end up getting calls from collectors and some collectors can be downright nasty. They often use guilt to get consumer to pay debts, even if that consumers doesn't owe the or if the consumer doesn't have the ability to pay. So, consumers pursuing settlement need to disassociate themselves emotionally from their debts, read up on the Fair Collection Practices Act (FDCPA) and be vigilant about their goal to be debt-free.
9. Can I be patient?
We live in a culture of instant gratification. We expect our food to be prepared before we put the lids on our fountain drinks. Our mail has to absolutely be there overnight and we want our pizza in 30 minutes or less. settlement doesn't work this way. It will most likely take several months before you save up and set aside enough funds to start offering settlements to a creditor and it may take weeks or even months of negotiations before a creditor agrees.
If you pursue settlement, you have options. There are many settlement companies to choose from and even law firms that will negotiate your settlements for you. However, you should definitely investigate any company you consider, whether or not they are a professional service company or a law firm. These companies will charge you a fee for their services, so be sure to compare how they charge to make sure you are getting the best deal. Also check with the Better Business Bureau to see how each company handles complaints. You should also only deal with companies associated with industry organizations, such as The Association of Settlement Companies (TASC) and US Organizations for Bankruptcy Alternatives (USOBA).
Of course, you can always negotiate settlements on your own. All you need is the right information and there are kits you can purchase to guide you through the process. Just do a search for "diy settlement kit" or "do-it-yourself settlement kit" and you should find an affordable kit that will show you how to settle your own debts without spending hundreds or thousands of dollars in professional settlement service fees.
Ultimately, how you resolve your issues is up to you. If you are in up to your eyeballs and struggling to make ends meet, then you should do something. doesn’t sit; it grows with interest and fees and every dollar you owe in interest is a dollar you don't have to pay towards rent, mortgage, food, education or family vacations. For your own personal and financial wellbeing, there's nothing like being debt-free.
how to get out of debt
get out of debt
out of debt
debt help
help with debt
how to get out of debt
get out of debt
out of debt
debt help
help with debt
how to get out of debt
get out of debt
out of debt
debt help
help with debt
help with debt
how to get out of debt
get out of debt
out of debt
debt help
help with debt
how to get out of debt
get out of debt
out of debt
debt help
help with debt
