Debt Settlement – Using A Debt Settlement Company

Using a Debt Settlement Company Can Simplify Settling Your Debt

Have you considered using a debt settlement company?  If you have found yourself with more debt than you care for or can handle you may be considering ways in which you can consolidate and/or pay off your debt. The term debt settlement is frequently heard in connection with debt consolidation; however, before you jump in feet first it is important to fully understand what is involved in debt settlement.

Basically, debt settlement is the process of eliminating outstanding debts. As much as 60% of your debt can be actually reduced using this process. A debt settlement company is used in order to negotiate the exact percentage with your creditors. This allows you to more easily pay off the remaining amount of debt.

You may ask yourself why any creditor would agree to such an arrangement. In reality, it is much cheaper than trying to collect all of the original debt through collection agencies and agents. Keep in mind that you do not necessarily have to be several months behind on your payments in order to settle your debts. Waiting until you are several months behind on the debt or even until you are the point where the creditor is threatening to sue you could mean that a large amount in late fees and financial charges have been added to the original amount, which means that even if you do settle the debt, the amount remaining will be more than if you had settled it earlier.

The Advantages of Settling Your Debt

Debt Settlement - Advantages Debt Settlement Company

There are actually a number of advantages to settling your debt. One of the most important benefits is reducing the total amount that is owed, especially before additional fees are accumulated to the original amount. In addition, if you use a debt settlement service for more than one account you gain the advantage of paying just one monthly installment instead of several payments.  A debt settlement service also gives you the option to negotiate the repayment of your debt over an extended period of time. Generally, you can extend this period from about two to four years, perhaps even more, depending on your situation. For many people, one of the best benefits of debt settlement is avoiding debt collectors and harassing phone calls.

If you make the decision to settle your debt, always make sure you do your homework first in regards to the debt settlement company you choose. Check with both the Better Business Bureau and your state’s Attorney General to ensure you are dealing with a reputable company.

Related Article: Understanding A Debt Consolidation Loan