What Is Debt Settlement?

Uh, Um, Is That Debt Settlement Company Legit?
If a person were reading the advertisements concerning debt settlement, they would believe that this form of debt solution is the answer all for their debt problem. What do you think about this common debt settlement ad?

We will reduce your debt by 50% to 75% and get out your debt in 06 to 24 months. We will immediately stop debt collector harassment and quickly slash your payments. We will instantly stop foreclosure and help you avoid bankruptcy…. CALL NOW!
Debt settlement is the fastest and cheapest way to debt freedom!

If you had a major debt problem, would that ad prompt you take a look at that company? Most people we surveyed said, "YES!" Even though, they didn't understand what debt settlement was.

What Is Debt Settlement?
When it comes to the debt industry, you may have to throw some common terms and definitions out the window. I say that because, companies are constantly renaming debt solutions to make it appear as though they are providing a new service or option. The fact is; they are providing the same service, it’s just in a new package. Like they say in the once popular beer commercial, “Brilliant!”

Debt settlement is no different; it goes by a number of different names. Namely, debt negotiation, debt discharge, debt termination and sometimes debt management. No matter what anyone calls it, debt settlement is the process of successfully negotiating with a debtor’s creditors and getting them to accept less than the full amount of the balaance that is owed to them. For example, let’s say that a person has these unsecured debts…

Mastercard	$ 7512.00
Mastercard	$ 3875.13
Mastercard	$ 2950.87
Visa	$ 9878.55
Visa	$ 6101.42
Visa	$ 2237.16
American Express	$ 5922.44
Household Finance	$ 3896.74
Discover	$10201.66
Wells Fargo Unsecured Loan	$ 9623.89
Bank of America Personal Loan	$ 7215.01
Total Unsecured Debt	$69414.57

With a successful debt settlement, their total debt load could be reduced to: $38,178.02. That’s a reduction of 55%. As you noticed in this example, only unsecured debts were included. Please note: generally speaking, creditors such as mortgage lenders and auto financiers and other secured debt holders, will not negotiate any debt settlements. Especially, when they have a legal right to repossess or foreclose. If anyone is claiming they can negotiate settlement of secured debts, be weary and run the other way!

Why Would a Creditor Go For Debt Settlement?
Actually, in today’s credit system, with the credit bureaus and new bankruptcy laws giving them the decided advantage, creditors now have no real reason to settle. Unless of course, you can prove beyond a shadow of a doubt that you have no resources to pay the full amount; now or in the foreseeable future.

What type of evidence would a person need to present? A history of late payments, non-payments, late charges, penalties and increased interest rates. Your FICO credit will also need to be low; anywhere in the 500 to 600 range raises alarms in most creditors eyes. With those conditions, a person would theoretically qualify for debt settlement.

Can I Perform My Own Debt Settlement?
To be quite Frank, the average debtor is to emotionally attached to be objective enough to deal with all of the many facets of debt settlement. Most creditors usually end up eating DIY debtors alive. We do not recommend any consumer to attempt do it yourself debt settlement unless they have a background in finances, taxes and/or some type of debt management. Or, unless you use a qualified Debt Settlement coach.

People who read this article, also read:

FTC Hosts Workshop To Examine Debt Settlement Industry
FTC Hosts Workshop To Examine Debt Settlement Industry. Could this be the dismantling of this portion of the debt industry?
Debt Settlement Has One Major Flaw (Don’t Find Out About It The Hard Way)
Debt Settlement Has One Major Flaw. Don’t Find Out About It The Hard Way.
Debt Settlement Coaching - Settle Your Own Debts and Save Thousands
Debt Settlement - You Can Settlle Your Own Debts and Save Thousands. Don't Be Fooled Into Thinking That You Can't Do It Yourself; YOU CAN!
Choosing a Debt Settlement Company That Will Treat You Like Royalty
Choosing a Debt Settlement Company That Will Treat You Like Royalty is a lot like buying a home. You must perform a thorough inspection and we’ll show you how.

Joel Marks has been helping people get out of debt and avoid both bankruptcy and foreclosure for over fifteen years. Utilizing savvy debt counseling, debt management programs, Federal laws and a team of attorneys, debt counselors and advisors, he has quietly assisted thousands come from under the heavy burden debt.

For more information on this topic or any other issue related to getting out of debt, living debt free, debt management, debt relief, the Fair Debt Collection Practices Act and stopping debt collectors in their tracks, please visit www.DebtErasure.com

Source: http://debterasure.com/

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Debt Options

Debt Advice

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Debt Counseling

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◦	How To Choose a Debt Management Company and Not Get Burned In The Process (Part 2)

Debt Settlement

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◦	Choosing a Debt Settlement Company That Will Treat You Like Royalty

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Debt Relief

Christian Debt Relief

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Tax Debt Relief

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◦	8 Signs That You Have a Debt Problem (Part 2)
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◦	Attitude Adjustment is the Key To Solving Your Debt Problem (Part 2)
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◦	Lies, Lies, Lies… How They Trick You Into Amassing Credit Card Debt (Part 2)
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Debt Collection 101

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Get Out of Debt Help

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Money Managment

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Fair Debt Collection Practices Act

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