National Debt Relief Program
Debt Settlement
Today we discuss debt settlement and how it works. We also offer resources for getting started with a debt settlement program. What is debt settlement? Simply put, debt settlement is a financial program for dramatically lowering one’s unsecured debt by settling accounts with creditors for a significantly reduced amount. In the real world (no affiliation with MTV Real World) debt settlement has become one of the fastest and least expensive ways to get out of debt.
Often referred to as debt negotiation or debt arbitration, debt settlement is also a direct and aggressive approach towards dealing with debt and is most effective for unsecured debts that are $ 10,000 and above. Lower amounts of debt might best be better addressed through a credit counseling program. Unsecured debt is debt for which no collateral has been pledged. This type of debt includes credit card debt, medical bills, department store cards, utility bills, and judgments. Student loans and mortgage loans are not eligible for a debt settlement program.
How does debt settlement work? Debt settlement providers can negotiate with creditors on behalf of consumers and small businesses to settle for an amount much less than the original balance owed.
Upon completion of a debt settlement program, the plan participant will have paid off their debt and realized a substantial savings in the process. Why would creditors consider a debt settlement? “As they confront unprecedented numbers of troubled customers, credit card companies are increasingly doing something they have historically scorned: settling delinquent accounts for substantially less than the amount owed. ” – New York Times
In other words, debt settlement is in fact a win-win situation for both parties. The person or business in debt can settle their accounts at a significantly discounted savings, and the creditor can recoup a portion of what is owed. The idea of negotiating debt is actually not a new concept. Dating back thousands of years, it was known biblically as debt forgiveness. Today, debt settlement is an ethical and effective means for lowering, better-managing, and getting out of debt on a fast track basis.
To learn more about debt settlement and how to get started, please visit National Debt Relief Program.
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