You must have thought of settling your debts, if you believe that paying off the total debt amount is not falling under your affordability, and/or the debt is a high priority obligation for you.
You have thought it the right way, I must say. Not all debts are required to be paid off in full. It is an arguable fact, but even the creditors know that a 2 or 3 year old maxed out credit card has very thin chances to get paid off in full!
Debt settlement can be used only for unsecured consumer debts, that are mostly made up of unethical purchase mistakes, wrong decisions, or depreciating assets. And, you cannot disagree that the debts you want to settle, are the results of good hopes gone bad.
Examples are appropriately credit cards, payday loans, personal loans, and private student loans for many.
All these debts have a good chance of becoming fat on interests and penalties, if left unpaid for a long time.
We believe debt settlement is by far the most cost-effective, money saving, and a faster debt relief option, unparallel to any other way you may try to pay off your debts.
Debt settlement may not guarantee a total debtor-creditor relationship satisfaction, but it will very well let you get out of your debt situation once and for all.
But, debt settlement is not done, till done professionally.
You can try to get your debts settled on your own, but there are many harsh and tough steps involved, that you have to undertake in order to settle your debts to a total absolution!!
Settling your debts is not a very peaceful and friendly process of debt elimination. You have to argue with your creditors to get the debts settled for a lesser amount, than what you owe in total.
If, you can’t keep on arguing with them, then they will overpower you and cancel all the settlement agreements.
Openly speaking, the whole settlement process will involve lots of quarrels, and emotion is the last thing you should show to them.
The moment they make you understand with page long calculations and reasons, that your debts need to be paid off in full and no portion of them can be forgiven, your settlement deal is lost!
Don’t expect that both the parties, involved in a settlement agreement, will be keeping their mouth clean and refrain from swearing.
The game gets dirty, the moment you ask your creditor to settle debts.
In one previous article, from our end, it is explained well about ‘how to make your way to a good debt settlement’.
We don’t discourage the general consumers to do settlement on their own. If you can do it, then kudos to you. It’s a tough job, and you should pat yourself and say, that you have done it right. Congratulations!
But, the harassments are not only verbal! You have to send well formatted settlement offer letters to the banks, and/or creditors, to make them sign on them, consenting to the settlement agreement.
Now, getting their signatures on your letters is a pretty breath-taking task.
**The list of letters that you need to send, are listed here, under the Debt Settlement Letters section.**
You can download and mail them to your creditors, for their acknowledgement of the settlement deal.
However, they are not easy, and most of the times, the clauses need to be very professional and specific, which may not be accurately stated without a proper consultation with an attorney.
You can do debt settlement on your own, but don’t expect collection calls to stop, whether or not you have already started getting them.
A creditor won’t halt the collection procedures, even though you have sent letters of settlement for the debts.
On the other hand, once you enroll in a debt settlement program, with a debt settlement or debt relief company, they will be contacting your creditors, and give them appropriate proposals to cease any collection efforts directly on you.
The creditors are ready to work with professionals instead of going straight-forward agreements with individual consumers. The reasons are very much shrouded, but probably due to legal lawyers involved in the professional process!
You approach the settlement company with your debts.
The financial experts will review your debt status and give an approximate amount, for which your accounts can be settled.
They will give you a limited time, after having a brief talk with the creditors, say of 3 to 4 months, to get the amount ready. Once you have gathered the lump sum amount, they will contact your creditors and get the debt settled for good.
That’s the easiest way I can explain to you, what professional debt settlement looks like.
Guess, by now you know, why is settlement not done, till done professionally!