When there are no other solutions available, seeking debt settlement information is the right way to start heading towards a debt-free life. There are many factors to take into consideration when thinking about settling your debt.
Borrowers who are heavily in debt and find themselves unable to repay their full credit card balances will often look up debt settlement information (or debt arbitration and debt negotiation information) as an alternative to bankruptcy.
As a debt management strategy, settlement is not recommended. There are several reasons for this, such as a reduced credit score. As well, settlements deal only with credit card debt, not student loan debt or car loan debt, and especially not mortgages or domestic judgements. Since debt management takes the full spectrum of credit into account, relying on a settlement only takes part of the debt problems into account.
Depending on the severity of your situation, taking a one or two year ding on your overall credit score is a better option than what effect a bankruptcy would have on your credit for a significantly longer period of time.
Debt settlement information is available online, through multiple different services. While there are free sites out there, many online or over-the-phone companies will charge a fee, and be aware that taking the debt settlement route will impact your credit score.
In debt settlement, the credit card company or collection agency will settle for a reduce balance, usually thirty-five to fifty percent of the original debt. When the settlement is approved by the creditor, the borrower will need to repay all of the reduced debt at once, or in many cases will have to set up a repayment plan, much like a debt management plan, to repay the reduced credit.
Borrowers who are heavily in debt and find themselves unable to repay their full credit card balances will often look up debt settlement information (or debt arbitration and debt negotiation information) as an alternative to bankruptcy.
As a debt management strategy, settlement is not recommended. There are several reasons for this, such as a reduced credit score. As well, settlements deal only with credit card debt, not student loan debt or car loan debt, and especially not mortgages or domestic judgements. Since debt management takes the full spectrum of credit into account, relying on a settlement only takes part of the debt problems into account.
Depending on the severity of your situation, taking a one or two year ding on your overall credit score is a better option than what effect a bankruptcy would have on your credit for a significantly longer period of time.
Debt settlement information is available online, through multiple different services. While there are free sites out there, many online or over-the-phone companies will charge a fee, and be aware that taking the debt settlement route will impact your credit score.
In debt settlement, the credit card company or collection agency will settle for a reduce balance, usually thirty-five to fifty percent of the original debt. When the settlement is approved by the creditor, the borrower will need to repay all of the reduced debt at once, or in many cases will have to set up a repayment plan, much like a debt management plan, to repay the reduced credit.
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