If you told someone in your family, “I have debt” and they gave you advice, what do you suppose it would be? Most often, people do not understand the extent of your problems and will just tell you to pay a little extra every month until they are paid off. Of course, if you have a lot of unsecured debt, you may be tempted to file bankruptcy or try to borrow money for a debt consolidation. One thing not many people will mention to you is that there is another option to rid yourself of debt quickly and less expensively-debt settlement.
Debt settlement is the process of negotiating your debts down to the greatest extent possible and paying them off. If you are knowledgeable about all of the laws, debt collection practices, and how lenders and collectors handle debts, you could possibly negotiate things for yourself and have a good outcome.
It is vital that you know the difference between debts that are still being actively collected by the original creditor, in other words, the credit card company, and not a collection agency; and those that have already been turned over to collections. There is a whole different set of rules and procedures to be knowledgeable about with original creditors. To find out where the debt currently exists is simple; just call the credit card company. If they have already charged off the debt, they will not want to deal with you at all; in fact, they will not even take your money if you send it to them. Your check will likely come back to you un-cashed. The reason is that they have received the benefit of the tax write-off and have washed their hands of it completely.
If you owe money to collection agencies, try not to panic. Yes, they can sue you and get a judgment for the amount that you owe, as well as garnish your wages. However, the risks of that happening are not that high if you open the lines of communication with them, and attempt to pay off or settle the amount owed. It costs them money and a lot of time to file court lawsuits, attend hearings, file garnishment papers, and continually follow up to ensure payment. If you have any large amount of money, they will likely entertain a settlement option; without an upfront payment though, chances are they will not consider it. This scenario is where a debt settlement company can be of the most help. Even if you have dozens of creditors that you owe thousands of dollars each to, a good debt settlement agency can stave off lawsuits and get all your debts settled for pennies on the dollar owed.
Settlement agencies negotiate and will go to work speaking with your creditors right away, and offer them the lowest amount that their experience tells them might be accepted. Then they will take the money from the payments you are making to them and satisfy each of the debts according to a debt settlement schedule they put together for you. Because it is their only job, they spend all of their time negotiating and paying off the debts, getting your debt settle quickly and with the least hassle. Typically, people are out of debt in one to three years using debt settlement. If you would like more information on how to become debt free or simply get a free debt evaluation there are many reputable resources available on the internet.