The most common form of debt relief is called debt settlement—a process that seeks to help settle the debt for less than what is due. Consumers in dire financial straits who want to get out of debt can use this solution to move toward a debt-free life.
With that said, it’s important to understand how a debt relief company works when it comes to settling debts With debt settlement, you’ll cease making payments on your credit cards and other debts, and instead begin setting aside extra money in a separate savings account.
Once you have enough cash set aside to fund settlement agreements, your debt relief company will begin the process. While program durations can vary, you can typically expect them to run from 12 to 48 months, depending upon the amount of debt you’re carrying and how long it takes you to amass your settlement fund.
Also keep in mind that, while these organizations charge 15 percent to 25 percent of each enrolled debt, you won’t pay anything until a settlement is agreed upon between the creditor and yourself.
Advantages of Seeking the Services of A Debt Relief Company
- No upfront expenses for debt settlement: You will only pay fees as your debts are paid; therefore there are no enrollment fees.
- Consultation is provided free of charge. Without obligation, you can consult with a trained debt specialist.
- The company’s websites contain a wealth of information about debt settlement. At https://www.freedomdebtrelief.com, you’ll find a comprehensive source of information about debt settlement and how it works.
Other Types of Debts Addressed
The best debt relief companies are committed to assisting you in resolving most types of debt not secured by collateral. They cannot assist you in repaying secured debts such as a mortgage or vehicle loan, which are both backed by an underlying asset.
Types of debts that can be handled through debt settlement include.
Credit Card Debt: Credit card debt is the most prevalent kind of unsecured debt. Accredited Debt Relief can assist you in negotiating your present credit card balances and any associated fees, and then paying them off for less than what you owe.
Personal Loans and Payday Loans: Additionally, you can use debt settlement to negotiate and repay any unsecured personal loans you have, including payday loans.
Past Due Medical Bills: Additionally, debt settlement is also utilized to settle medical debts for less than the full amount owing. This is true regardless of whether you owe money to a hospital, a doctor, or any supplier of medical services.
Private Student Loans: While federally guaranteed student loans are immune to the debt settlement process, reduced payment of certain types of private student loans can be negotiated through a debt relief company.
About Customer Service
The primary objective of these firms is to successfully navigate the debt settlement procedure on an ongoing basis. Their counselors assist you in navigating the laws governing debt settlement while safeguarding your rights, including those guaranteed by the Fair Debt Collection Practices Act.
Understanding how a debt relief to Open Your Own Company works is the first step toward determining whether this approach is right for your situation. For many people for whom things are well out of hand this can be the most expedient solution. And, in most cases, it’s a far better option than filing for bankruptcy protection in federal court.
With that said, it really depends how far gone your situation is. Other debt relief options include debt counseling, debt management and debt consolidation.