subject: Debt Settlement Warning - How The Debt Settlement Process Really Works [print this page] Debt Settlement Warning - How The Debt Settlement Process Really Works
Before the stage of negotiation comes, a credit card holder should follow few guidelines. These guidelines are not rules defined by the government but, they are the measures that can help you throughout the whole process. First of all, we will have to divert the attention of the company. If you are making payments that may be in small amounts, you will not be able to divert the company's attention. You have to stop making payments to the credit card company. After a few days or weeks, that credit card company will contact you. The credit card company will send a warning letter or will try to contact you through phone. You should try to make an impression on their mind that you are going through extreme financial crisis and you can't make further payments.
The company will then send their collectors. If you receive any threatening calls from a collection company, then don't panic. Debt settlement can be done in two ways. First is self help and second is taking assistance from a professional or a loan settlement company. If you want to save your money, then you can negotiate directly too. This may take a long time in getting a debt settlement. Consulting a well proven record company is more suitable. If the debtor has good relations with the loan settlement companies then this can not only save his money but can also save his time. Try to make good relations with the loan settlement company's staff. These companies are closer to credit card companies than anyone else. That is why they can get a settlement in less time. In fact, credit card companies get their money back because of these settlement companies. Usually, credit card companies don't provide information about their loan settlement plans.
Now-a-days, there are many companies and online organizations that claim to provide debt settlement services. These companies do nothing for credit card holders. Beware of these companies. These settlement companies only charge fees and withdraw money from your bank account. Many debt relief programs introduced by non-profit organizations and the government are available in the markets and you can avail them easily.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.
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