debt settlement can help your debt problems.
Your financial situation is different from someone else. The credit card debt relief service that works for someone may not be the best choice for someone else. You should take the time to understand all the debt relief options available to you to find the best solution for your needs and goals.
Credit Card Debt Settlement Guide Locator
What Is Debt Settlement?
Consumer Debt Settlement (or debt adjustment) is the process of resolving delinquent unsecured debt for far less than the amount owed by promising the lender a substantial lump sum as full payment. Debt settlement comes into play only with your unsecured debt like credit cards, medical bills and personal loans. This debt relief option will help you only if you have a financial hardship and have little likelihood of repaying your creditors. Your creditors are not going to negotiate and accept less than what you owe if there’s a belief you are able pay the entire debt originally agreed to.
The consumer debt settlement process will hurt your credit score since you will not be making full payment on your credit card accounts. However you will already have hurt your credit score by being delinquent on these accounts, even before considering this debt relief option. As long as you are aware of the impact and have a plan to recover afterward, debt settlement can be the right solution for you. Since this process is truly debt reduction, It offers a fast exit from your unsecured debt and a clean start moving forward with your life.
Types Of Debt Settlement
How Does Debt Settlement Work?
Debt settlement is true debt reduction. This debt relief option is where you or a third-party agency negotiate with your lenders to resolve delinquent debt accounts for far less than the amount owed by promising the lender a substantial lump sum as full payment. Debt settlement comes into play only with your unsecured debt like credit cards, medical bills and personal loans. Your credit card accounts need to be already 3-6 months delinquent and you are in a financial hardship where your creditors have little expectation of receiving any payment on their accounts. The risk of receiving no payment is the motivation for negotiating with you as there is always an implicit threat that you might declare bankruptcy.