Debt
Settlement
The term debt settlement is used to
describe a process that consumers can implement that
will settle debt for less than is owed. Debt
settlement can be accomlished with almost any kind of
debt, but if the creditor has a security interest in
your property, like a car or house then you are at risk
of losing the property through repossesion.How Debt Settlement Works
The
best way to begin a debt settlement program is to make a
spreadsheet that contains a list of all your
debts. It ought to look like this:
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After you have
contructed your spreadsheet, contact each of your
creditors and let them know that you are compiling
data for your debt settlent program and ask them if
they would be willing to accept a reduced payoff.
Take note of what they say and complete the entire
spreadsheet before you agree to anything.
Once
you have compiled all the information from each
creditor, decide how much money you can put towards
your debt settlement program now and every month going
forward. Now you need to estabish a debt
settlement fund, which is a savings account that you
add money to every month instead of making regular
monthly payments to your creditors.
How
does debt settlement effect my credit?
Debt
settlement using this method will destroy your credit
rating. You have to stop paying all your
non-secured creditors and they will report this to the
credit rating agencies. They will call you, write
you letters, and do everything they can do including sue
you and confiscate your property to collect what you owe
them. Some creditors won't budge and will demand
every penny. These creditors ussualy get nothing
when you end up in bankruptcy.Home | Debt Settlement | Credit Repair | Bankruptcy | Debt Consolidation
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