Debt Relief - Important Things To Keep In Mind About The Settlement Process

by john couch - Date: 2010-03-08 - Word Count: 437 Share This!

Every coin has two sides. There is no doubt that debt settlement offers fantastic benefits. However, there will be certain negative consequences of this process as well. Hence, it is your duty to research on each and every aspect of all debt relief options before opting for any one. Read ahead for certain important points that you must keep in mind as far as the settlement process is concerned.

No expert may tell you but your credit score will take a huge hit after you opt for a waiver. This is because lenders take a dim view of those individuals who have sought to be excused from a full and complete repayment of debts. A settlement is nothing but there a unilateral discount obtained from the lender. The lender does not gain anything in return.

Technically, a waiver is a loss for the lender. Of course, the fact that the borrower does not declare bankruptcy, and lender recovers at least a small portion of the amount owed is a big advantage. All said and done, do not be surprised when your decent credit score becomes very poor after the settlement process is completed. In all probability, you will have a poor credit score when you start thinking about this debt relief option.

You should be careful when you pay the company. Settlement companies would love to obtain each and every cent of their fees in advance. However, there been innumerable instances where companies provided excuses for promises not being fulfilled after obtaining the fees in full. If you do not want to get stuck in such a scenario, you should make payment in installments. There are reputed companies that are agreeable to such a condition. Identify such companies and deal with them only.

A settlement transaction is no different than any other contractual obligation. Just as you put all contracts and writing and obtain copies of the same, you should keep a copy of the agreement in your hands as well. Do not be surprised if lender refutes the settlement at a later debt. Such instances are taken place and the lender continued with the process only after it was shown that the borrower had proof of waiver.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:Free Debt Advice

Related Tags: debt, debt relief, debt settlement, debt solutions, get out of debt, debt settlement programs, legitimate debt settlement companies

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.

Recent articles in this category:

Most viewed articles in this category: