With record numbers of foreclosures and unemployment on the rise each month, many Americans find that their financial outlook is spiraling out of control into a deep money pit. To make matters worse credit card debt balances are rising for millions of Americans leaving them vulnerable to companies trying to help them get out of debt who truly do not have their best interest at heart.
I have spent years working in the debt relief industry, both in credit counseling and now in debt settlement and I know how to spot a company that only cares about their profit and not the well being of their clients.
With the current state of the economy most people are not able to manage a credit counseling program and turn to debt settlement because they do not want to file for bankruptcy. But how do you get off the credit card debt treadmill quickly and legally is the question most asked. For those that do not understand debt negotiations I will explain how it works and then also explain what some of the unscrupulous companies will say, so you can avoid them and find a company that wants you to succeed.
Debt settlement is the end result of debt negotiations, whereby a process of either saving money with the intent to later negotiate a one time payment with your creditor(s) or having a lump sum to start with. The benefit of this process is saving both money and time, many people who enroll with a legitimate debt settlement company often times will see themselves saving close to half of what they owe and get out of debt within four years or less.
Saving money and getting out of debt in a fraction of the time versus paying minimum payments are the benefits of debt settlement; but first you must realize that there are pitfalls of this process before signing up. Many debt settlement companies will overlook informing you of the pitfalls and pretty much use the, don't ask don't tell, policy when it comes to any negatives.
First understand that no creditor will ever be willing to negotiate on a debt when you are current with your payments on the accounts you want to settle on. If you think about it for a second why would they? The creditors would prefer you to continue running on the "credit treadmill" for decades paying them their monthly minimum payments and losing tens of thousands to interest in the end. So if they feel you can maintain your minimums they will never negotiate a settlement for less than what is owed on the balance. So being in default with a creditor is the only way you can get their attention when it comes to debt negotiations to reach a debt settlement. There is simply no way around that.
Now the problem with the un-reputable "scam" companies is they will simply not tell people this and will do everything in their power to sugarcoat the whole process and never offer full disclosure to the negative aspects of the program. There is no way of avoiding the damage to the credit report when falling behind, however the damage done is not permanent and can be disputed in the future once the settlements have been negotiated and your debts paid off.
As you can imagine when you stop paying your creditors they will call in an attempt to collect the debt. This is part of the process and if you cannot accept this than debt settlement is not for you. The problem companies I have been talking about will promise they can stop all the collections calls. If you hear this run for the hills! Because the bottom line is no company can completely stop all the calls and they are simply telling you that to make you feel comfortable and sign up. With that being said there are steps that can be taken to greatly reduce the calls and a legitimate debt settlement company will assist people in taking the proper steps towards sending out the correct cease and desist letters to help you do just that.
Another issue I feel that is very important is for those who are considering the debt settlement process to understand is how long this process should take. Like I said earlier the benefits of this program are saving both money and time, and to maximize the savings of both you should look to get this process done as quickly as possible. Ideally the target goal should be within two years, consider that if you can struggle with your current minimum payments but can make them, then this debt settlement process could get you out of debt in as little as two years. But the longest someone should consider being in a debt settlement program is about four years. Anything longer would mean that you might truly be better qualified for bankruptcy.
The scam companies will allow the client to pay whatever it is that they can, even if the company knows that the low payment will not suffice to complete the program. They simply allow you to pay whatever you feel comfortable with so they can sign you up on the program and take fees. A legitimate company will review your budget and your individual creditors to see if there is a plan that will work for you to become debt free. If you talk to a company that will allow you to pay whatever again run for the hills.
Finally yet importantly always make sure the company you are reviewing is an accredited member of the BBB and has a good rating. What you really must look at is how long they have been in business and how many and what type of complaints they may have. A company that has been in business for at least three years and has a clean record is a good place to start.
I hope after reading this you feel more enlightened and armed with knowledge that will help you make the right financial decision for you to become debt free. If you would like to see if this debt settlement program will work for you then I encourage you to click the link below and fill out an application form or call the toll free number and request speaking with me. I will review your particular situation in detail to see if something can be done to help you out. And if my company cannot do anything for you I will point you in the right direction.
Stephen Bis is a senior debt analyst with FSLC a BBB accredited debt relief company helping people to get out of debt and get back on better financial ground.
I have spent years working in the debt relief industry, both in credit counseling and now in debt settlement and I know how to spot a company that only cares about their profit and not the well being of their clients.
With the current state of the economy most people are not able to manage a credit counseling program and turn to debt settlement because they do not want to file for bankruptcy. But how do you get off the credit card debt treadmill quickly and legally is the question most asked. For those that do not understand debt negotiations I will explain how it works and then also explain what some of the unscrupulous companies will say, so you can avoid them and find a company that wants you to succeed.
Debt settlement is the end result of debt negotiations, whereby a process of either saving money with the intent to later negotiate a one time payment with your creditor(s) or having a lump sum to start with. The benefit of this process is saving both money and time, many people who enroll with a legitimate debt settlement company often times will see themselves saving close to half of what they owe and get out of debt within four years or less.
Saving money and getting out of debt in a fraction of the time versus paying minimum payments are the benefits of debt settlement; but first you must realize that there are pitfalls of this process before signing up. Many debt settlement companies will overlook informing you of the pitfalls and pretty much use the, don't ask don't tell, policy when it comes to any negatives.
First understand that no creditor will ever be willing to negotiate on a debt when you are current with your payments on the accounts you want to settle on. If you think about it for a second why would they? The creditors would prefer you to continue running on the "credit treadmill" for decades paying them their monthly minimum payments and losing tens of thousands to interest in the end. So if they feel you can maintain your minimums they will never negotiate a settlement for less than what is owed on the balance. So being in default with a creditor is the only way you can get their attention when it comes to debt negotiations to reach a debt settlement. There is simply no way around that.
Now the problem with the un-reputable "scam" companies is they will simply not tell people this and will do everything in their power to sugarcoat the whole process and never offer full disclosure to the negative aspects of the program. There is no way of avoiding the damage to the credit report when falling behind, however the damage done is not permanent and can be disputed in the future once the settlements have been negotiated and your debts paid off.
As you can imagine when you stop paying your creditors they will call in an attempt to collect the debt. This is part of the process and if you cannot accept this than debt settlement is not for you. The problem companies I have been talking about will promise they can stop all the collections calls. If you hear this run for the hills! Because the bottom line is no company can completely stop all the calls and they are simply telling you that to make you feel comfortable and sign up. With that being said there are steps that can be taken to greatly reduce the calls and a legitimate debt settlement company will assist people in taking the proper steps towards sending out the correct cease and desist letters to help you do just that.
Another issue I feel that is very important is for those who are considering the debt settlement process to understand is how long this process should take. Like I said earlier the benefits of this program are saving both money and time, and to maximize the savings of both you should look to get this process done as quickly as possible. Ideally the target goal should be within two years, consider that if you can struggle with your current minimum payments but can make them, then this debt settlement process could get you out of debt in as little as two years. But the longest someone should consider being in a debt settlement program is about four years. Anything longer would mean that you might truly be better qualified for bankruptcy.
The scam companies will allow the client to pay whatever it is that they can, even if the company knows that the low payment will not suffice to complete the program. They simply allow you to pay whatever you feel comfortable with so they can sign you up on the program and take fees. A legitimate company will review your budget and your individual creditors to see if there is a plan that will work for you to become debt free. If you talk to a company that will allow you to pay whatever again run for the hills.
Finally yet importantly always make sure the company you are reviewing is an accredited member of the BBB and has a good rating. What you really must look at is how long they have been in business and how many and what type of complaints they may have. A company that has been in business for at least three years and has a clean record is a good place to start.
I hope after reading this you feel more enlightened and armed with knowledge that will help you make the right financial decision for you to become debt free. If you would like to see if this debt settlement program will work for you then I encourage you to click the link below and fill out an application form or call the toll free number and request speaking with me. I will review your particular situation in detail to see if something can be done to help you out. And if my company cannot do anything for you I will point you in the right direction.
Stephen Bis is a senior debt analyst with FSLC a BBB accredited debt relief company helping people to get out of debt and get back on better financial ground.
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