Having seemingly insurmountable debts is not easy. The situation gets worse as you repeatedly default on your payments and debt collectors make your life a living hell with their constant collection attempts. You want to do something about it, but bankruptcy is the last thing you want to do. Are you an Oklahoma consumer, stuck in a situation like this? Then, you should try debt settlement and get an easy way out of debt.
Debt settlement works the same way across the US. It is a debt relief option where the creditor accepts a reduced sum of money from you that is considered full repayment of your debt.
Debt settlement is an effective debt solution for consumers who cannot afford to pay off their obligations in full but want to avoid the pitfalls of bankruptcy.
You can settle your debts either by negotiating directly with your creditors or you can enroll with a Better Business Bureau accredited debt settlement company in Oklahoma and get your debts settled.
The most economical way to settle debts is to negotiate with your creditors directly. Effective debt settlement requires effective negotiation. So, you need to employ the right negotiation tricks in order to make sure you get a suitable settlement.
If you do not know how to go about it, then here are the steps that you can follow to reach an amicable settlement with your creditors:
If you find the task of negotiation too hard and time consuming, then the best thing you can do is sign up with a reputable debt settlement company in Oklahoma and get your debts settled. Before you enroll check if the company is accredited by the Better Business Bureau so you can be sure that your money and your debt issues are in safe hands.
When you sign up with a debt settlement company, the company handles your debt issues and works on them in the following manner:
The duration of a debt settlement program is contingent upon several factors such as the type of debt, the number of debts you want to settle, the outstanding debt amount, etc. Usually a credit card debt settlement takes about 3-9 months, while most other debts take about 12-36 months.
The effect of debt settlement typically depends upon two factors - the delinquency of your accounts and your existing credit score.
If you settle your delinquent debts, then your credit report will show them as "settled" or "paid" and your credit score will be boosted.
If your debt accounts are not delinquent and your credit score is comparatively better, but you are not sure if you can continue with your payments, you can still go for debt settlement.
When you sign up for settlement of non-delinquent debts, your credit score will decrease, but only temporarily. With successful settlement of your accounts, your credit score will improve and make way for a good credit report.
An Oklahoma debt settlement program will benefit you in the following ways:
The IRS considers any forgiven amount in a debt settlement to be taxable income.
On the completion of the settlement process, your creditor is expected to report your forgiven amount to the IRS and send you a 1099C form so you can report the forgiven amount on your Federal tax return.
If your creditor fails to send you the form, you should take the initiative notify the IRS about the forgiven amount and report it on your tax return.