Saturday, June 19, 2010

Debt Settlement - The Right Way to Consolidate Debt

In the present society, credit cards have become a part of every individual’s life. More and more people are falling in the attractive offers of the credit card issuers. But it should be kept in mind that you are not getting any item of free of cost, it is after all your money that is being spent. If you won’t keep this in your mind then undoubtedly you will suffer from credit card debt. If you have tried all possibilities of debt consolidation but failed to get the proper solution then debt settlement can be an alternative.

Debt settlement is not only the debt relief option to get out of debt but it also settles credit cards, gas cards, store cards, personal loans, medical bills, auto loans, debts related to taxes, mortgages etc. Debt settlement allows you to pay approximately 40% to 60% less then what you are required to pay.

In debt settlement program you are offered free debt counseling option. The debt counselor will assist you in working out a budget so that you can manage your finances better in future. A trust account will be created in favor of you so that you need not to make payments to the creditors. When 50% of the outstanding balance is accumulated, the debt settlement company works on your behalf. Depending on how much you can pay towards debt settlement, a repayment term is fixed by the creditors.

1 comment: