Are you tired of living with debts? Have your debts increased to an extent that consolidation is not proving effective? Then you should try some other option that will sort out your situation better.
In this situation, the best option would is to choose a Colorado Debt Settlement program. Here, you can get rid of your debts in a short time by making the minimum monthly payments.
With Colorado debt settlement, you can reduce your debt to a great extent. If the negotiation process is successful, you can reduce the debts to approximately 40-60% of the original debt.
In Colorado you can settle your debts in two ways:
A. Settle Your Debts by Yourself:
In Colorado you can easily negotiate your debts by yourself. You just need to ask your creditors for a reduction of your principal and the interest rates.
First, you need to convince your creditors about your inability to make the entire monthly payment. Telling the creditor that you may have to file for bankruptcy if they do not agree on a settlement plan might get the creditor to agree more readily.
Here a few basic guidelines that will help you when settling your debts alone:
B. With the help of a Debt Settlement Company:
If you find the debt settlement process complicated, then it would be better to opt for professional assistance from a debt settlement company. With help from a debt settlement company you can get rid of your debts faster. A debt settlement company will be aware of all the legal complexities of your case. But, before deciding on a debt settlement company, you should check out the company's accreditation with the Better Business Bureau (BBB).
The settlement company will appoint a debt settlement attorney, who will work with your creditors on your behalf. The lawyer will negotiate with your creditors to reduce your debt and interest rates. They will also notify your creditors to stop all communications with you once you are represented.
If you will have problems paying a lump sum settlement, then try proposing a repayment plan. A law firm will help you save for a lump sum settlement, and they will negotiate an installment plan if necessary. Thus, it is always better to have a professional at your side.
The duration of a Colorado debt settlement program varies depending on several factors. These factors include:
The duration to settle credit card debts in Colorado is 3-9 months, and 1-3 years for other debts.
In Colorado, there are various debt settlement programs customized to suit your needs. With these settlement programs you can easily improve your credit score. When you first begin the settlement process, the debts you have already incurred will decrease your credit scores.
But after your enrollment, when you begin making regular payments on your account, your credit scores steadily improve. If you settle your delinquent accounts first, your credit scores increase more. After your debts are paid down, and marked "paid off"/ "settled", your credit score recovery continues.
Any amount forgiven under a debt settlement program is counted as income by the IRS. You are required to report it on your income taxes for the year the debt was forgiven.
If you qualify as insolvent on the day before your debt was forgiven, you do not have to pay taxes on the forgiven amount.
Last Updated on: 07 Sep 2016