Salem Credit Card Debt Settlement
If you are trapped in card debt, and you don’t know what to do, here is another financial solution that you can utilize with the help of a card debt expert in Salem: debt settlement. Debt settlement is a strategy that uses negotiation with the creditor that aims to settle the amount to be paid at an affordable rate that’s lower than what is owed. This process is usually applied to substantial debts to a single source, but it can be used with debt to multiple creditors. Debt settlement is distinct from debt consolidation, which combines all debts from different creditors so that the debtor will only have to pay to a single source.
Call Optimal Debt Solutions at (561) 475-5788 if you need help with your credit card debt.
More About Debt Settlement
Debt settlement also means your debt will be reduced at a considerable value that is favorable for the debtor. That is what’s enticing about this financial strategy. But if you will take a closer look, you will know that it is also a risky process. Usually, financial experts would only recommend this if none of the other debt relief methods worked. It is quite difficult to process as it is beset with an undesirable outcome if not done properly.
If you ask a credit expert to negotiate with the creditor on your behalf and he approves the offer of paying less than what is owed, then things will start to turn out positive for you. If you have a debt of, let’s say, $15,000, then your representative can offer him at least $7,500 in full payment.
Although, that’s not where it all ends. Problems may start arising if you have a debt to multiple creditors. You will be required to negotiate with each one of them. If you become delinquent, neglecting to pay for your bill, you will have to repeat the process all over with each creditor.
How Does Debt Settlement Work?
If you want to know whether you can settle for a debt less than what you should pay for, the answer is yes, as long as the creditor agrees to your proposal. This is the goal of debt relief companies. They will tell you the range of the amount of money you can offer to the creditor. Also, they will inform you about how long the process will take.
If you’re thinking of doing it yourself, you actually can, but the risk is doubled. Debt collection agencies know very well how to counter the ideas of negotiation that you will propose. They may use intimidating strategies to test you. It will be very wise to hire card debt experts who will do the work for you.
Normally, it takes 36-48 months for the debtor to pay enough money to the bond account so that the card debt experts will be able to propose an excellent offer to the creditors. During the saving of money phase, you need to be prepared for the significant growth of the total amount of debt due to interest and late fees added.
Steps in Debt Settlement Process
1. Start saving immediately and hire a representative.
Since we are talking about debt, money is always essential to get yourself out of trouble. Save as much as you can, because you will need it in negotiating with the moneylender. You need to prove that you have money in your bank to pay them lump-sum. Also, decide whether to hire a card debt expert or a lawyer to represent you. Although you can do it yourself, chances to be approved by the creditor are higher when an experienced expert does the talking.
2. Meet with the creditor and start negotiating.
You or the representative will have to do it to convince them right away. The worst-case scenario is when you haven’t paid for six months already. Most probably, the debt case has already been turned over to a debt collection agency. When this happens, the trouble doubles. Their goal is to get more money from you. But don’t worry, your representative will do whatever it takes to get you out of the situation you’re in.
3. Send monthly payments to your representative.
Normally, this is the way to go. You stop paying monthly to your creditors, and you pay to your representative instead as they work on setting up your account. It will typically take you three years to save the money needed for a good offer. The only disadvantage is, the interest fees will increase over time, and your balance will grow in total.
4. Make an offer.
After that, your representative can begin the negotiation with the creditor. But don’t be in haste, this will not be a fast transaction. Credit companies are not responsible for accepting any debt settlement offers from their debtors. The process could take several months or years. Once the creditor agrees with the offer, your job is to have it written and ask them to sign it. In addition to that, ask them to send the major credit bureaus notice containing the statement that the debt has already been settled.
5. Allot money for different expenses.
With the money you have saved, you have to distribute each respective amount to what you should pay. You need to pay for the accumulated interest fees as well as the total balance. Debt settlement companies charge 15% of the amount owed to the creditor or 25% of the amount you have saved. Also, you owe taxes to the Internal Revenue Service.
Finding the Right Debt Relief Company
In debt relief services such as debt settlement, the help of credit debt experts is necessary. In Optimal Debt Solutions, you will receive all the help you need to settle your balance. We will disclose all the information you must know before engaging in our services. Negotiation is the expertise of our credit debt experts in Salem, FL. We are committed to providing you with the best financial services that will remove your burden. For more inquiries, just dial (561) 475-5788. You can get a free evaluation by booking now!
Call Optimal Debt Solutions at (561) 475-5788 to get a free consultation with one of our Credit Card Debt Settlement Experts!