Whenever you’re in a position where you have debts that are no longer a value to you, for example, a credit card that’s maxed out, and you are finding yourself in a financial crisis, debt settlement services can offer some help. Debt settlement is essentially where you get the lender to agree to accept an amount that is less than the total amount of the debt in order to resolve the issue. That amount can be either a lump-sum payment or a series of payments over time.
How Much Can You Settle
Depending on the type of lender, you will see a wide range, but in most cases, it is possible to settle the debt for less than the full of what’s owed in order to resolve the situation. Many credit card companies will be willing to accept as little as 20-30% and in some cases, even less than that to settle the full amount. A HELOC, a home equity line, or a second mortgage on your home may accept a few thousand dollars to settle the entire debt as part of the short sale. On the other hand, an auto lender will usually be very hesitant to accept anything less than 5, 10 or maybe 15% discount on their debt. Credit unions are also very hesitant to accept much of a discount when it comes to settling a debt.
Avoid Keeping Your Money In The Same Institution
Whenever you’re involved in a debt settlement process, wherever you keep your money, in whichever banking institution, it should not be the same institution that you’re trying to settle. That’s because you’re running the risk of them being able to access your funds or see that you have money. That will compromise your ability to be effective in settling the debt.
You should also be aware that when you’re settling the debt, in most cases, it’s better to use someone as a representative with effective debt settlement programs than to trying to do it yourself directly. If you do it yourself, you can, in some cases, be successful but most of the time, the creditor will not take you as seriously nor will you be able to get as good a discount as if you use a professional in this area.
Need to settle your debts? Get in touch with America Debt Resolutions today for a reliable, time-effective and budget-friendly debt settlement service!