Debt Settlement
By: Dan Delgado
Debt settlement is the direct result of negotiation on a delinquent account such as credit card debt, medical debt, repossessions and more. We can then say negotiation is the key to debt settlement and many debt settlement programs are therefore not necessary.
The art of negotiating can be applied to anything, many of us are expert negotiators and we do not even know it. When we go out and buy the car of our dreams, we negotiate on its color, tires, stereo and much more. When we buy a house we use the art of negotiation, we look for a discount on the price to pay. It is exactly the same idea behind negotiating delinquent unsecured debt. No program or negotiation company has re-invented the wheel, there is nothing new to how negotiations took place a thousand years ago or how they are done today. The only thing that must be kept in mind is to know about what you are negotiating on. Before buying a car we buy a million magazines and get informed, before buying the house we talk to many different sources. We get informed. The same must be done before we decide to reach settlements on our unsecured debt.
Many debt relief programs are presented in a complex way, it does not have to be that way. Most of us are confused with the rules set up by many of the companies handling these programs. Debt negotiation is quite simple if you have the time. Most of us can save ourselves a huge amount of money if we take our time to get informed. It is true there are many laws to follow when negotiating unsecured debt, but these laws are easily accessible on the internet. Again, most of us would just require time to negotiate our own debt. All of the money paid out front to debt relief agencies is a waste, any money paid in between is a waste also. The only time we should pay any of these agencies is when a settlement is reached on any of our accounts because they actually took the time out to negotiate on it. Why should we pay any money out before anything is actually done?
Keep this in mind. If anyone stops making the regular monthly payments to their creditors the interest rates will go up, late fees and penalties will continue to accumulate until the account is brought back to a current status, we pay our debt in full or we reach a settlement on the amount owed. In the case of a settlement we will be agreeing to pay back a part of the money owed after we have accrued late fees and penalties. If this is the case, why do most debt relief programs place us further into debt by charging us retainer and maintenance fees that do absolutely nothing to help us get out of our debt?
Same as when we buy that new car or that home, we need to research our best options when it comes to finding the help we need to lessen our debt load. Debt settlement programs are not presented properly most of the time, many important details are left out so that prospective clients are not scared off right off the bat. The truth is money can be saved by negotiating unsecured debt, what is often not told are the possibilities of wage garnishment, having property attached to,lawsuits, etc.. If we are behind on our payments with out the advise of a debt relief agency debt negotiation is probably the best alternative, keep in mind the amounts of accounts settled is dictated by how fast funds can be accumulated for settlements.
Negotiations are dictated by funds available, no one will ever settle any account if money is not being set aside. Keep in mind the amount being negotiated on. We cannot set aside $200 a month on $25,000 worth of debt and expect to reach settlements on all accounts, this will be financial suicide. We must set realistic goals, most people usually save anywhere from 40 to 50% off their total debt if all the conditions are met, especially having the funds to settle when the offers come along. Do not be lured by false promises from companies that have nothing to lose on your behalf and get informed before making a decision.
Dan Delgado is an active unsecured personal and business debt negotiator. For more information please visit http://www.pemperandgartle.com/
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