These days, getting out of debt is at the forefront of most people’s minds. Our debt has gotten completely out of control. It is interfering with our sleep, our happiness, our relationships, our peace of mind, and our lives in general. So, what you need to know now is how debt settlements work, and how you can take advantage of them to regain control of your life – without debt.
When you contact a debt settlements company – after selecting a legitimate company – the company will gather information that they need from you. In most cases, they will not consider your secured debt, because there is little that they can do about secured debt. What they want to know about first is your unsecured debt.
Next, the company will look at your savings and your income. What they are looking for is how much money you have access to that you can use for lump sum payments, so that they can negotiate your debts for you. You see, when they contact your creditors, they will make an offer to settle the debt, and the creditor will either accept or reject the offer – or make a counter offer.
Ideally, the debt settlements company will try to negotiate a deal that has you paying only about 40% of what you owe, with that 40% being paid in one lump sum. The key here is that you must have that money available to make that lump sum payment.
In the event that you do not have a suitable sum of money set aside for the negotiations, the company that you are working with will tell you how much you need to save, and will help you set up a trust account to save that money. A reputable debt settlement company will never have access to, or handle this money in anyway – it stays in your control. Once the sum is suitable, negotiations begin.
Finally, with a great deal of your debt taken care of, a full service debt settlements company will consider your secured debt and see what they can do about consolidating that debt. Debt counseling may also be a service that is offered to you, and should definitely be taken advantage of.
If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt settlement companies and increasing your chances of eliminating your debt.
FreeDebtSettlementAdvice.com is one of the largest and most respected debt relief networks on the marketplace today. To find a debt settlement company through FreeDebtSettlementAdvice.com check out the following link:
