Your first duty is to determine whether debt settlement is the right solution
for you. On approaching
a debt settlement firm
the consultant will analyze your present financial
standing and render you with free counseling. He will suggest you with a settlement
program and if you agree you will need to fill up some basic forms.
On receiving the basic information from you the Debt Settlement Company
. This is to inform them that they are working on your behalf
and the creditor is expected to redirect all further communications to the
Debt Settlement Company. In all probability you can now avoid the harassing
calls from the creditors. All accounts for those cards in dispute are closed.
You are requested to avoid using those credit cards while on the program.
If you still receive any calls, keep a record and inform the Debt Settlement
Company through phone or by fax. The Debt Settlement Company then contacts
these creditors and reconfirm that they should not be communicating with you.
The Debt Settlement Company negotiates with you to fix the amount
for the monthly payment
. The amount depends on your present financial
position. Your payment amount for the Debt Settlement Company needs to be
saved every month and are solely to be used for the debt settlement program.
Deposit the fund in a separate account while the settlement program is on,
which will be used by the Debt Settlement Company.
After the monthly payment is finalized the Debt Settlement Company starts
with all your creditors
. Negotiation is done keeping in mind your benefit.
The firms try to obtain the most lucrative and affordable settlement for you.
Usually, most settlements
range between 30 - 60%
of the total debt amount. Debt Settlement Company
stay in contact with you to ensure funds are available before a settlement
is reached. All settlements are based on the amount and type of debt you owe
and the amount of funds you have.
The deal is finalized only after a copy of the settlement letter is sent
to you for approval. If you agree with the settlement and the terms, the Debt
Settlement Company completes the agreement with the creditor. The monthly
starts henceforth to eliminate the account at the revised amount.
You need to be paying off your credit cards one at a time, which ensures
that you get steady results. A complete updated feedback on the current settlement
situation is given by the Debt Settlement Company to all the creditors while
the payment process is on. Once a creditor is eliminated, you are expected
to pay the fees to the Debt Settlement Company. The settlement process is
then shifted to the next creditor and the process continues until all your
debts are cleared. A client with average debt can complete a debt settlement
program in 36 months or even less.
The Debt Settlement Company has professionally experienced staff to assist
you for any query you have during the program. Negotiations for all your accounts
are done individually. Debt Settlement Company do not make bulk settlements
like many other companies and so are able to get better results by giving
you individual attention.
On the completion of the debt settlement program successfully creditors
report to the bureaus that your account
and that there is now a zero balance remaining with them.
Now you will receive a written document from them stating your debt for the
particular account is cleared and that no further money is owed. Your account
is expected to have a decent status now.