Settle Unsecured Debt ASAP
By: Dan Delgado
Different credit companies have different criteria when offering settlements on unsecured debt. More and more these companies look to negotiate a way out of the money owed to avoid having to sell their debt to junk buyers or collection agencies.
It is true creditors can claim much of the unsettled debt as a loss and still not take a big hurting, but in these times of recession every penny they collect from their debtors is better than none at all. Usually a creditor will charge off an account about 180 days delinquency, this means the account will be forwarded to a collection agency or sold to a junk debt buyer. Once this happens settlement percentages will change, some for the best some for the worst.
Collection agencies and junk debt buyers are now more and more buying old debt from creditors. In the past they would serve as a third party collecting on the creditors behalf and earn a percentage on the money collected from the debtor, some collection agencies and creditors still handle business in such a fashion. Others now buy the debt directly from the creditors for pennies on the dollar and claim they cannot settle the debt for less than 80 or 70%, thus making a tremendous profit for their efforts. Some of the junk debt buyers, who also buy old debt for pennies on the dollar and hire debt collection lawyers for their collection process. There are ways to get better deals from these companies, but one must know what to do to achieve them.
Some accounts depending on the creditor believe it or not are better off going to collection agencies for better settlements. There are a handful of creditors that under no circumstances will negotiate a reduction on debt owed. In this case a negotiations professional can inform you as to which accounts to negotiate with the original creditor and which ones to negotiate with a collections agency.
The debt settlement industry is forever changing, dictated by the decisions taken in the credit card company board rooms everyday. Debt negotiators are aware of these changes as their job is to speak to these very companies everyday. No debt settlement service can exactly estimate how much money anyone can save by negotiating on their debt for the same exact reasons I just mentioned, the best way to know this is to engage in negotiations. Once a negotiation is underway your debt settlement negotiator will have a better idea of the probable savings .
One fact is true the more active a person is in pursuing agreements with their creditors or collectors the sooner all the debt will be settled. Hiding for the most part will do no good as interest rates, penalties and late fees will continue to accumulate. All creditors, collection agencies and junk debt buyers will factor in this added charges when collecting on the unpaid accounts.
Therefore it is extremely important to remain proactive in the pursuit of arrangements to eliminate all debt. One of the most important decisions is to find the professional help which will help you do it as fast and as efficiently as possible.
Dan Delgado is an active unsecured debt negotiator, he has experience negotiating personal as well as business debt. For more information please visit http://www.pemperandgartle.com
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