Considering Debt Settlement for Personal Debt Consolidation


For many people, debt settlement may be inevitable. They have considered personal debt consolidation but there just seems to be little hope because the amount of debt is just too much. These individuals are very vulnerable and must definitely educate themselves before relying on debt settlement companies.

There are many options when it comes to debt settlement companies. In many instances, these individuals have considered personal debt consolidation but they may owe in the area of tens of thousands of dollars and even a low interest loan is going to be expensive over the several years that they will have to pay on the loan.

If you are in trouble in the area of revolving debt and you have defaulted on credit card payments, paying a personal debt consolidation loan is going to hold you accountable for almost twenty years. A reputable debt settlement firm may be able to reduce your settlement by 75% and give you the option of being able to pay off your debt within three years.

This sounds great, but how does it work? When you enroll with a debt settlement company your lender will re-age your debt. Then you will begin paying a monthly payment to the debt settlement company. Instead of getting a personal debt consolidation loan, you pay this company and they pay your creditors.

This is where you have to be careful. Some agencies will simply hold on to your money and wait until you have enough to pay off your debt. Then they will negotiate with the company to pay off your debt at a discounted rate to them. In many cases the creditors are just happy to get some of the money and will deal with the company. This company will keep the rest of your money as a payment for negotiating on your debt.

In the mean time, you may still receive collection calls and letters from the creditors. Even with reputable companies this may occur for a few months. The reputable companies will work with the creditors to end the calls and will begin negotiations right away. If the calls do not stop, you should contact the company because they may be holding on to your money and none of your debt is being paid on. If this occurs, be prepared to have a horrible credit rating at the end of the process.

Because you credit rating may take a beating during this process, you will want to be sure that you research the company that you choose to deal with extensively. You do not want your credit rating to be destroyed even when you are trying to do the responsible thing. Debt settlement companies should only be used as a last resort. If your debt is not extreme, you should consider personal debt consolidation through your personal bank as it will be less stressful situation and your credit rating will be saved.


© Copyright 2018 Diversified Technologies  508-760-3758
Cape Cod, MA 02664
Privacy Policy | Terms of use | Contact us
Also visit www.CAPECODDVD.com