subject: Ways to Settle Debt [print this page] Ways to Settle Debt Ways to Settle Debt
When the country entered a financially unstable state during the recent years, many businesses sought more capital to protect their standings in the market. Some businesses used loans to improve the quality of their products while some used the loans to improve their services in anticipation of tough times ahead.
As individuals also suffered from the economic crisis, many sought loans because they needed financial support for their families. Most of these individuals were then facing the possibility of losing their homes due to increased mortgages and the prospect of unemployment.
While both industry and individuals need loans, the obligation to pay off these loans is now inevitable as the whole country is moving on from the economic crunch. While debt settlement is familiar to most, we must still keep abreast with available options for future reference. Here are three common means to settle debt.
The do-it-yourself approach requires the borrower to negotiate directly with the credit company. The advantage of this method is there will be no mediators between the borrower and the creditor, as both parties will meet together to discuss a payment plan. In case a person wants this approach, it is advisable to read books to find out tips on how to negotiate a debt settlement scheme effectively.
The lawyer-to-lawyer approach requires the borrower to hire a lawyer who can start negotiating for debt settlement with the credit company's lawyer. Instead of the borrower and creditor meeting directly, the lawyers of the respective parties will instead make negotiations for their respective clients. The advantage of this approach is that both parties could receive legal counsel on the steps they will take and there will be lesser chances for tempers to flare since lawyers will do the actual negotiations.
Using a debt settlement company requires the borrower to negotiate with a debt settlement company instead of the credit company directly. The advantage of this system is that the settlement company usually has an established relationship with credit companies. Therefore they can negotiate debts faster. Furthermore, the borrower may request the settlement company to remove bad debt from the credit rating report so the borrower may retain or improve his or her credit rating.
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