If you are in the midst of a financial struggle and looking for relief, debt settlement is one option. This process involves negotiations between your creditors and a settlement service or attorney. The goal is to reach an arrangement where you pay back part of your unsecured debt, but receive some relief. Generally when you are trying to settle debt, you are offering to pay your creditor less than what you owe, but in a lump sum amount in order to have the debt forgiven. Keep in mind that debt settlement only occurs with unsecured debts. There are a few results that could happen in debt settlement:
- Your creditor agrees to a lump sum payment and considers it full payment of the debt.
- Your total debt amount would be a lowered and a manageable payment schedule would be created for you to follow
- Your creditor refuses to lower the debt amount but allows you to use an affordable payment plan to repay the debts
Debt settlement can help because it clears your debt quicker than if you were to try and pay if all off. Being able to take care of your debts is a great feeling for individuals that have been struggling with debt. If you choose to use a debt settlement company to pursue this relief, you will most likely make monthly payments to the company that they will save in order to negotiate with your creditors. You can also team up with an attorney and pursue the process yourselves. This is often a safer method because all too often debt settlement companies abuse their power and take a large portion of the money for their services or close down and take your money. Regardless of the method you take, debt settlement can help you find the relief that you need. Contact Bryant, Logan, Wheeler Law Group, PLC now for help through the process!