Debts are inevitable in life, but people manage debt differently. For instance, when struggling with overdue debt, some people may consider debt settlement. Although a workable solution, few people know how to be successful with debt settlement.
Debt settlement involves agreeing to pay a portion of the debt in a lump sum to wipe out the entire debt. It provides financial relief to borrowers and allows them to rebuild their credit. It also enables creditors to receive at least some money owed that they would otherwise not receive.
Debt settlement can be a costly and risky alternative; however, an individual can adopt measures to make their debt settlement successful.
1. Choose the Right Debt Settlement Firm
A debt settlement company is like your partner in your journey towards debt reduction. The company helps broker the best deal for your situation and ensures you stay on track in your finances. Therefore, it is important to partner with the right company. Research thoroughly and choose the one that follows industry standards is dedicated to protecting consumers and their finances and has an excellent reputation.
2. Always be Cautious
It is one thing to partner with the right company and another to understand that, typically, companies are driven by the need to make profits. As such, some companies will make outrageous promises to win you over. Proceed with caution when certain promises, such as a company guaranteeing that creditors will agree to debt settlement.
Once you have identified a debt settlement company, the next thing you want to do is have all the necessary information before getting into an agreement. Inquire about the charges, hidden costs, implications, and other critical questions. Also, stay in touch and disclose necessary details about your debt and financial situation.
4. Review Your Financial Situation
In debt settlement, you will be required to pay a portion of your debt in a lump sum. Some debt settlement companies may involve putting money into special savings account for 24 months or longer until you settle your debt. You should be able to keep up with these payments before striking a deal.
Your Debt Settlement
Are you considering debt settlement and do not know how to go about it? Freedom Debt Relief has got your back. Driven by the passion for helping people overcome debt and its implications as quickly as possible, we take a human approach to debt relief. So it is no surprise we have been among the top debt negotiators in the nation for the past 15 years.
We have an excellent and highly effective debt relief program designed to help even the most debt-burdened consumers. Our program allows you to wipe out your debt in just four phases without necessarily paying the total amount owed.
In the first phase, you make a deposit into an FDIC-insured dedicated account that you control. While your account grows, our team creates a custom plan to get you debt-free.
In the second phase, our team of experienced expert negotiators works out a deal with your creditors to settle your debt for significantly less than you owe.
In the third phase, our team gets you the best savings possible. We contact you for authorization and approval every time we settle one of your debts.
Lastly, your credit card is behind you once full payment is made and you no longer owe your creditors. This is when it’s time to stay on budget and do everything possible to avoid falling into debt again.