Debt settlement can help you regain your financial freedom. If you are in debt, get help from a supportive and proven debt settlement company to pay off your debt once and for all.
What is Debt Settlement
Debt settlement is negotiating a settlement of the debt with each creditor instead of filing bankruptcy. The amount settled can often be much less than the balance owed or claimed to be owed. However, going down this route may require you to hire an attorney, which can get tricky quickly. Through a debt settlement process, you (or ideally a professional firm) negotiates with creditors to settle a debt for less than what is owed. This method is most commonly used to settle a large debt with a single creditor but can be applied to multiple creditors.
The benefit of debt settlement is that you will be paying less of what you initially owed. However, it is a risky and non-guaranteed way to approach your debt. To be successful at it, you have to come with considerable negotiation skills with lenders. Debt settlement can negatively impact your credit score, as well as a drag on for up to 36-months before you see results. However, getting our debt is also important to start increasing your score and achieving a healthy financial status.
Debt settlement only works for debts without collateral. It can be used in the case of unsecured credit card loans and consumer accounts. As a recommendation, pursue it when you are currently behind on payments and your credit rating is low.
How to Choose a Firm
It’s important to be responsible when looking for companies, so always look for—at a minimum—an accreditation from the AFCC and the IAPDA. Hence, you know you are handing your money over to someone legitimate. A reputable company will offer you dedicated, human support throughout the process, charge only a reasonable fee, and give you options to help tailor your program to terms that make sense.
According to the FTC, debt settlement companies must be transparent with you and tell you how long and how much money you need before you can settle. Settlement companies must also disclose “the possible consequences if the customer fails to make timely payments to the creditor’s”. They cannot force a creditor to accept a settlement offer. Arguably, the most important thing to look out for is whether the company guarantees to settle with all of your creditors.
We’d recommend you choose a transparent and open company with you about their processes and the outcomes.
Best to Settle Unsecured Debt
Freedom Debt Relief is the largest debt settlement company in the U.S. They have helped over 800,000 consumers to resolve over $10 billion in debt since its foundation in 2002.
The Freedom Debt Relief Program is an affordable solution to help minimize your debt load. A dedicated team member works with your creditors to negotiate a settlement offer that helps you get rid of debt without blowing up your budget. The program covers credit card debt, department store credit debt, medical debt, and personal loan debt. Free consultations are available, and their experts will negotiate with your creditors to reduce your debts.
Find a Debt Settlement Company
A debt settlement company will assess how much you owe to work out an amount for you to pay every month once you’ve accumulated a larger amount of money before contacting creditors to negotiate a settlement. You must perform your own research to ensure you work with a high-rated and reputable company that will help you settle your debt.
To help you find a legitimate company that can help with your debt, we have listed some companies that can help you settle your debt. Start to regain control of your financial situation by settling your debt to look forward to a brighter financial future.