Are you a Michigan citizen, looking for a permanent way out of huge debt repayment sums that you’re paying every month? In that case, resorting to a debt settlement plan could help.
Debt settlement is one of the preferred choices for consumers in Michigan. In this type of plan the debtor and creditor agree upon a lower sum of money which is considered payment in full.
This not only helps you avoid the hazards of bankruptcy, but also reduces the principal debt amount, eliminates the late fees, and lowers the APR.
Therefore, negotiation plans give you the best mix of debt elimination and credit management.
Once you are sure you want to try debt settlement, you should decide whether you wish to negotiate by yourself or seek help from a professional debt settlement company.
If you decide on settling your debts by yourself, you must follow a few simple steps:
If negotiating with your creditors seems too difficult to do all by yourself, you may want to consider hiring a debt settlement firm to look after your debt issues.
Michigan abounds with debt settlement companies that promise to put an end to your debt problems. But it is always advisable that you go for a settlement firm accredited by the Better Business Bureau (BBB).
The BBB accredited firms in Michigan offer excellent professional assistance of renowned debt settlement lawyers and aim at providing perfectly legal and suitable solutions to your debt problems.
All you do is pay an upfront fee along with monthly representation charges to the company. And all your debt settlement issues will be taken care of by the settlement firm.
Successful negotiation by a lawyer could reduce your debts even up to 60%. Consumers enrolled in Michigan Debt Settlement plans save a lot, which greatly helps them regain their financial stability.
A normal credit card debt settlement procedure can take 3-9 months to be finalized. You may want search the internet or consult a lawyer to get an idea of credit card laws in Michigan. This will help you understand the debt settlement procedure better. And once the procedure is clear to you, you can make best use of the settlement program you are opting for.
However, if you wish to speed up the process, you may get your debts settled within about 1 to 3 months. Even if you want to go for payment in installments, the process could be stretched for 12 to 18 months.
Besides these, in certain cases of debt reduction, the entire procedure could take about 4 years or more to get completed.
Michigan Debt Settlement laws protect consumers in several ways:
A good debt settlement program can reduce your debt worries considerably. However, you must assess your financial state before choosing a settlement program.
Here are some tips for you to decide whether debt settlement suits your situation:
Debt settlement is taxable. Any redeemed balance that exceeds $600 is regarded as taxable income. However, if your liabilities exceed your assets you may apply to the IRS for tax redemption by filing form 982. You should consult a tax specialist about this before proceeding.