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Debt Settlement: A Better Option than Bankruptcy?

Nov 10th, 2009
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When you are so far in debt you cannot afford to continue your payments without needing to file for bankruptcy what do you do? Should you try to attain a debt settlement or file for bankruptcy? Which program can harm you in the long run , and which can help you in the long run more effectively? This really depends on your current situation.

Is a settlement better then a bankruptcy?

Bankruptcies are very damaging to showing a person’s reliability to making payments on time, the person cannot attain credit cards, financing, or more for seven years or more. With a settlement as long as the future plan is not broken to make timely payments and stay out of future debts then a settlement is very beneficial.

What is debt settlement?

A settlement of debt is a program in which when you are faced with bankruptcy you can speak with the company in which you are in debt to, explain you are in a situation as to where you need to file for bankruptcy due to the debt being so severe, and make a compromise as to where the company will reduce your total debt anywhere between 5 and 50 percent of the total debt owed to prevent you from filing for bankruptcy. You can also hire a 3rd party company which can speak with your debt holder on your behalf to better your chances of achieving a high debt settlement on your total debt.

What does someone need to qualify for a debt settlement?

To attain a settlement of debt a person needs to have accumulated a significant amount of past debt in which proves of their inability to make future payments, their credit will have been significantly damaged, and due to non-payments the total debt will be building up even higher than it had originally stood with service fees, interest fees, and much more. Some settlement programs will also require a down payment towards the total reduced debt, so the person would need to save up some money before trying to gain the settlement.

Nationwide Debt Center, headquartered in Brea, California, helps individuals and families experiencing financial distress to take positive action towards reestablishing their fiscal footing by offering services that is affordable and realistic. They are experts at guiding many individuals to leading a debt free life via their effective debt settlement program.

For more information on their phenomenal debt settlement services and debt settlement program, visit http://nationwidedebtcenter.org

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Debt Settlement Services: Does it Hurt Or Help Your Credit?

Nov 10th, 2009
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Debt settlement is a process in which the debtor and creditor negotiate on an account to accept a one-time reduced payment in order to settle the amount, or forgive the remaining debt. Settling debts can be a frustrating process and often consumers opt to have specialized companies aid in the negotiation process.

Debt settlement is most frequently used by consumers that have defaulted on unsecured debts, such as credit cards. With the rate of default on unsecured loans increasing due to the economy, banks and other financial institutions have departments that specialize in negotiating debt. These institutions may offer consumers who have defaulted a settlement in hopes of using the amount of outstanding debt.

Many consumers become interested in settling debt when trying to apply for financing. With bad debt or charge-offs on credit reports, banks are less likely to lend to the consumer because he or she is risky on whether the money will be repaid. So, consumers look into settling their debt in hopes to obtain the financing they want. However, what many consumers do not know is that settling debt will not help improve their credit score.
When debts are settled, companies will report to the credit bureau agencies that the debt is settled, which in turn, will be reflected on the consumer’s credit report. Settling the debt will not remove the account from the credit reports. However, banks and financial institutions will look more favorable on debt that is settled versus debt that is not.

Debt settlement is not a way to improve credit scores since the account will still show past due pay history to lenders who view credit reports for consumers who have defaulted on debt. However, payment for deletion is another option for consumers today to settle debt and have the account removed from their credit report.

Therefore, if you are looking to settle your debt in hopes of improving your credit score, discuss this issue with your debt settlement consultant as settling your debt might not necessarily improve your credit score. Your consultant should be able to guide you towards the right steps to take in helping you settle your debt and improve your credit score.

Nationwide Debt Center, headquartered in Brea, California, helps individuals and families experiencing financial distress to take positive action towards reestablishing their fiscal footing by offering services that is affordable and realistic. They are experts at guiding many individuals to leading a debt free life via their effective debt settlement program.

For more information on their phenomenal debt settlement services and debt settlement program, visit http://nationwidedebtcenter.org

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How to Choose The Best Debt Settlement Company

Nov 10th, 2009
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Being buried in debt is not a good thing to be in as there are effective debt consolidation plans that may help ease the burden. Nationally recognized debt settlement companies like Nationwide Debt Settlement can help you with your debt settlement needs.

What is the best way to find the right debt relief company to work with? After all, this not something you would bring up with your friends at dinner parties. That means you’ll have to do some homework on your own. However, there are some things you can look for to try and make the task easier and less fraught with disappointment.

One of the most important factors in choosing the right company is looking at the length of time they have been in the business. Usually, a company that has 10 or more years of experience providing debt relief services has a better track record than a company that has 3 years of experience

It is vital that you are thorough in your research when it comes to choosing the best company to help you settle your debt.

As stated above, one of the most important factor in looking for a good debt settlement  is how long they have been in the business. A company like Nationwide Debt Center that has been providing debt relief services for 10 years or more is more likely to have a better track record than one that has only been in business for 2 years.

Privacy is another important factor. Make sure they do not sell your information to a third party.

Check the ratings of the debt settlement company. If there is a high number of unsolved complaints, you should take precaution when signing up with them.

Make sure you look at their fee structure. What does the company charge you to 1.) Get set up in the program and 2.) What are the ongoing costs. Most companies these days charge a percentage of your entire debt. So let’s say you have $35,000 in unsecured debt, and they charge you a flat fee of 15%, that comes out to $5,250. That’s a lot of money to pay to a company when you are yourself are struggling as it is.

Try looking at debt relief companies that are incentive based. In other words, the lower the negotiator can get your debt down (say .30 cents on the dollar vs. 50 cents on the dollar), the better it is for you and the better it is for the negotiator.

With these factors fulfilled. You can narrow down your choices and choose the best debt settlement company for you.

When you commit to a company, make sure you have it in writing. This will protect you as there are many companies that are out to get your money without providing the services.

Nationwide Debt Center, headquartered in Brea, California, helps individuals and families experiencing financial distress to take positive action towards reestablishing their fiscal footing by offering services that is affordable and realistic. They are experts at guiding many individuals to leading a debt free life via their effective debt settlement program.

For more information on their debt settlement program, visit http://nationwidedebtcenter.org

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