subject: Debt Settlement Payments - Creating a Feasible Payment Plan to Get Out of Your Debt [print this page] Debt Settlement Payments - Creating a Feasible Payment Plan to Get Out of Your Debt
Recently, more and more people have become burdened by their spending habits and started finding themselves in debt, with no reasonable option to pay it back in a relatively short amount of time. That's where debt settlement comes in - it is a solution to help you get rid of your debt in a faster, more manageable way.
Usually only available for those with debt of at least ten thousand dollars, debt settlement promises a lot, namely a cutting in half of your debt - and it usually also delivers. It usually implies that the debtor finds a company or agency to help them negotiate with their creditor in order to secure a good, solid deal, with the debt being paid back usually within three years.
The company is also the one that helps set up the payment plan that you will follow. Although it's usually best if you pay the rest of your debt in one large chuck, this doesn't usually happen, so you have to make a payment plan. This plan has to be relatively short because most creditors will not wait more than four or five years for you to pay, and is usually two to three years long. In addition to paying your debt, your monthly payments will also include the fees for the debt settlement company, although it's best if these are spread out rather than having them take up the first few months.
The payment plan must take into account your monthly income and set payments so that you can comfortably afford them, but without stretching the debt over a large period of time, as this would cause you to pay more, due to interest. The interest is, however, small enough because this debt is usually secured, so as to make it easier for you to pay it back in the long run.
A good payment plan can sometimes be the difference between a successful, debt-free life and being stuck for a couple of decades still paying interest on your debt. The only thing you need to do is to choose the right company, and change your mentality so that you won't find yourself in the same position in the future.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options. For a free consultation from a debt relief specialist in your area check out the following link:
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