subject: Debt Settlement Program - How to Choose a Debt Settlement Program That Suits Your Financial Need [print this page] Debt Settlement Program - How to Choose a Debt Settlement Program That Suits Your Financial Need
The debtors now have an array of Debt Relief programs to choose for settling their debts. Each program is designed to deal with a specific situation. For instance those debtors who have very little cash in hand and they want to settle their debts. They are recommended the Debt Settlement program; according to this program 60% portion of the debt amount is exempted from payment and the debtor can settle the debts without paying the entire amount payable. The debtor has to suffer negative marking in the credit history, as the full payment is still not made but incase the debtor makes 12 straight payments, extra points are awarded to consolidate the effect of negative marking.
Another very popular Debt Relief program is Debt Consolidation; it is usually opted by those debtors who are struggling to pay off their credit card debts because of the high interest rate. As credit card debts are unsecured debts and they have very high interest rate and until the total amount payable is not paid back it keeps on increasing. This program can only be availed if the debt amount is less than $5K. According to this program the debtor borrows money from the creditor on very low interest rate. The debtors pay back debt with the higher interest rate. Thus the debtor gets rid of the higher interest rates and the creditor averts the possibility of another potential bankruptcy. The creditors determine the new interest rate in light of the financial condition of the debtor. Therefore it becomes very important the facts are explained to them proficiently to convince them to grant the maximum relief.
In case the debt amount is more than $10K then the debtors are asked to go for the Debt Negotiation program. According to this Debt Relief program the debtor can get a wavier of 40-70% on the entire debt amount. The amount of wavier is decided by the creditors in context of the financial state and credit history of the debtor. This is why the debtors are always told to negotiate with the creditors via a Debt Relief company because they know how to convince the creditor to get the maximum wavier.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
Check out the following link for free help from a certified debt relief specialist:
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