What Is Debt Settlement And How It Can Help You Get Out Of Debt
With a little work, you have gotten into debt. It isn't hard to do and millions of people all of the world have the same problem too much debt and not enough income to cover the expense. This comes from over extended credit, high interest rates, and huge fees. Debt settlement can be one way to help you out and save you a ton of money.
What Is Debt Settlement?
If you have ever been in major debt and been seriously behind by more than perhaps a year to two years depending on the company you may receive noticing saying discount pay this much now and pay off this debt. What this means is that the company is willing to accept the discounted amount as payment for the debt. Once you pay this amount, the debt is considered paid and is written off on your credit report as such. This is what debt settlement is.
How Can Debt Settlement Help You
There are many times when a debt has become so large that you are unable to pay it. It may even be that the size of the bill keeps growing because of the interest rates and you are unable to make any headway and fall behind. After a while, the debt becomes a bad debt and you are faced with collections. Once in collections you have debt settlement options. Debt settlement can be your way out from under the burden of debt. There is usually no time limit on settlement offers. They will simply keep sending them to you.
This allows you to have a good idea of how much they are willing to settle for. You can two options, save up the money and pay off the requested settlement amount or negotiate. If you negotiate, you may be able to get the debt written off for less money. However, you will need additional paper work. The first being a letter stating that they are agreeing to your price for the debt settlement, then once you have this mail the payment and then request a letter from them stating that they have marked the debt as paid in full. This paperwork is very important.
The reason why having this paperwork is important is because of the fact that if something should be misreported on your credit report without it you have no way of proving they agreed to that amount for the debt settlement or that it was paid and should have been changed.
