In a debt settlement program, the creditor agrees to slash the outstanding balance of the consumer by a certain percentage after a successful negotiation process. The program is usually offered by a settlement company in exchange for a fee.
The best part of the program is that consumers can settle a debt for pennies on the dollar. They won't have to pay late fees, fines or penalties.
A debt settlement program (also known as debt settlement plan) is a legal bill repayment method that is beneficial for both consumers and creditors in specific situations. It is a process wherein consumers pay less than what they owe after a mutual agreement with creditors. This program saves the time of creditors since they don’t have to get into the complex legal process of bankruptcy. On the other hand, consumers save a lot of money as they don’t have to pay the whole amount.
This debt relief option works on a very simple principle, and that is you have to pay less than what you owe. Usually, it starts working when you have missed payments on your accounts for a few months. A creditor is less likely to reduce your outstanding balance if there’s a reason to assume you can pay the entire amount.
When you miss your payments, creditors become anxious and worried. Settlement companies take advantage of this situation and negotiate with creditors to lower your payoff amount on the unsecured debts. The deal is you’ll pay a lump sum amount and the creditor will update your credit report as “paid as agreed” or “paid as settled” or “settled”. You’ll finally be debt free.
Why is Oak View Law Group unique? What makes it the best debt settlement company in the country? Find out on your own.
People are busy nowadays. They don’t have time to visit a debt resolution company physically and initiate the negotiation process, especially when everything can be done online. Nowadays, you can settle your debt online and get back on the right financial track. You can make payments online and monitor all activities 24*7. You don’t need to wait until the company gives you a statement.
Some other benefits of settling debt are as follows:
Settling debt with creditor is a tricky process. If you’re not good at negotiation, then credit card companies may not agree to forgive a big portion of your debts. In that case, you can leave the tedious task of negotiation on OVLG and relax at home.
Attorneys are there in the industry for several years. They know the ins and outs of debt settlement programs very well.
Yes, there are lots of tips to choose best debt settlement firms. Here are a few of them:
Settling with debt collectors is not an easy task since they are ruthless negotiators. They earn a commission on the total amount collected from collection agencies. So they always try to collect as much money as possible. You have to be really smart and know the FDCPA laws minutely to deal with them. Nevertheless, here are a few strategies you can use to settle with a collection agency.
The best debt settlement program can help you save a huge amount of money. It can help you save big on the outstanding balance, penalties, and late fees. If your accounts are past due for more than 180 days, then collection agencies may agree to cut down the outstanding balance by a big percentage since they are not getting money anyway.
Your credit score is likely to drop by a few points after you get debt settlement. The drop is marginal because your credit score is already very low due to delinquent accounts. When you’re past due on your accounts, your credit score drops significantly. When you miss payments on your accounts, it implies that you’re not a responsible borrower, and that is a red flag for the lenders.
Credit bureaus reward consumers for positive credit activity and penalize them for negative activities. So when negative information like missed payments is added on your credit report, your FICO score drops.
When you’re looking for debt negotiation services, you should get acquainted with the laws to avoid getting scammed. The Telemarketing Sales Rule was introduced in 2010 to safeguard the interest of consumers and prevent debt settlement firms from using fraudulent activities. Here are a few important laws that everyone should be aware of.
Here you're talking about DIY debt settlement. Well, it's not for everybody, and this is why several consumers approach attorneys. Here are the 10 qualities you need to have to negotiate on your own:
10 Qualities you need to have
Well, a lot of people refer DSP as:
Next time, you hear these names, don't get awestruck.
This is nothing but DSP.
It is registered with CalBar and Cal Chamber
Hi,
It takes only a few seconds to decide if debt settlement would work for you. All you need to do is check out the types of debts you have.(pause)
If you have delinquent credit cards, personal loans, payday loans, private student loans, collection accounts, medical bills or utility bills, then debt settlement will definitely work for you. It helps you save 40%-60% on your payoff amount without filing bankruptcy. (pause) Also, you can avoid debt collection calls and late fees. (pause)
But if you have mortgage loan or federal student loans, then it won’t work. (pause)
Debt settlement will drop your credit score initially and you have to pay tax if your total savings is more than $600. But, it will gradually increase as you start following the tips given to you in the free budget counseling session every month.
Still Confused? Call our financial coach at 800-530-6854 to analyse your debt and make the final call.
Last Updated on: Tue, 18 Aug 2020