Debt Settlement Advice That Helps You Avoid Bankruptcy

Unfortunately, it has literally become standard practice in the United States for a person to have a debt problem. In too many scenarios; a major debt problem! Meaning, they are over their heads in debt with a financial crisis such as bankruptcy looming in the backdrop. Here is some debt settlement advice that may very well help you avoid filing bankruptcy.

One of the major reasons for their financial hardships is credit card debt mismanagement. These days people tend to use the credit cards almost as if there was no payback agreement. They have yet to comprehend how this free spending mindset can land them in tremendous economic hardship.

If you are one of the millions of Americans strapped with plastic debt, heed this debt settlement advice and you will get out from under this ever-mounting pressure. You may or may not have heard of this form of relief, but rest assured, its one of the best options right now considering our current economic conditions. Debt settlement advice essentially comes in five different approaches.

In a nutshell you settle your debts through: a (DIY) Do It Yourself program, a debt settlement advice coach, a debt settlement company, a credit counselor or through an attorney. The negotiations are designed to propel your unsecured creditors to accept an amount less than your actual balance as payment in full. The window of opportunity for creditors to agree to this type of deals varies, but rest assured they happen everyday to some degree or another.

It is not uncommon for a person to receive a settlement of 60 to 80 percent. If you’re asking, “why?” You have to remember, at this point, the other two options are: (a). Force the debtor to file bankruptcy. In that scenario, most credit card providers and creditors walk away with very little to nothing. By settling, they recover a portion of the debt without any additional legal fees. (b). Force the debtor to altogether abandon their repayment responsibilities. In this scenario, creditors get zilch! This usually becomes a waiting game for the debtor; with the end being the seven period when negative infractions drop off of their credit reports.

Once the amount is negotiated and agreed upon and the money is paid, you will be released from that debt. Two important key points to mention: one, if you negotiated properly, you should have requested that the creditor notate the account on your credit report as, “Paid in Full.” If not, even though the account has been settled, it will still show as negatively on your credit report.

Two, none of these options are easy, that is why you should seek counsel and do your research to determine which approach will be the best for your set of circumstances. On a good note, there are certain organizations such as Consumer Credit Counseling that have professional counselors who will provide you with great debt settlement advice at no charge.

You can use their services to help you get your finances in order and establish a secure future. You need to make sure that if you opt for their advice that you follow it. This debt settlement advice is one of the best ways you to save yourself from bankruptcy.