Is This The Solution You Are Searching For?
Millions of people around the United States alone are deep in debt, and many people struggle under the enormous burden of having to pay off credit card debts, mortgages, car payments, and student loans.
Many times these loans are simply more than a person can pay off, but they are unaware of a solution that can get them out of debt. If you are facing a serious problem with your debt, what you need are debt settlement services.
How do Debt Settlement Services Work?
When you have high debts that you cannot pay off, you need to find a way to reduce or settle the amount that you need to pay. This is where a debt settlement service comes in. You inform the debt settlement service about the various debts that you have, including all of the information regarding your various creditors and the amount that you owe each of them.
It is important that all of the information regarding your debt is included, as that is the only way that your debt settlement services will be able to be able to settle your debts with the various companies to whom you own money.
Once your debt settlement service has all of the information regarding your debt, they will give you an estimate to help you reduce your debt. This estimate comes with a new payment plan that enables you to make lower monthly payments that will be more accessible for you.
Rather than paying off the companies to whom you originally owed money, you start paying the debt settlement services. This makes it easier for you, as you no longer have to pay a number of creditors each month. Instead, you simply pay one large sum every month to a single company in order to pay off your debts.
The first payments that you make on your debt are immediately deducted by your debt settlement services as the fees for their helping you settle your debt. Once their fees are paid off, the money begins to be accrued in an account.
Once the amount of money in the account has reached a certain limit, the debt settlement services you hired call around to all of your creditors to begin the process of negotiating the debt settlement with them. You continue to pay the debt settlement services until all of your debts are paid off.
Are Debt Settlement Services Good?
For many people, debt settlement services are the miracle they have been looking for. When debt is overwhelming and there is nothing they can do to pay off their debts, many people find that the reduced amount that they have to pay thanks to the debt settlement services is a huge load off their back. No longer are they paying dozens of creditors each month, but they simply have to pay a single sum every month. They are also able to reduce the amount of money that they owe, thanks to the debt settlement services reaching a settlement with your various creditors.
The downside of using debt settlement services to help you settle your debt is the fact that it lowers your credit score a good deal. Seeing as you are not paying your creditors during the months that your debt settlement service is reaching an agreement with them, this goes on your credit history as you not paying your debts. These late payments will show up on every credit report you get over the next 7 years, and your credit score will remain negative until you start putting some positive information in your credit history.
You may find that a number of things are more difficult thanks to your low credit score. You will get higher insurance rates than you may prefer, and you may even have difficulty obtaining employment. Credit cards may be harder to obtain, you may not be able to get unsecured credit for a year or two, and you may even have to pay taxes on your debt.
When it comes down to it, it is all about priorities. If you can’t find an alternative to settling your debt, then you will find that debt settlement services are the solution for you. Despite the fact that it will lower your credit score, at least you will no longer be under the heavy burden of paying off thousands of dollars in debts each month.