A Comprehensive Guide to Debt Settlement

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Providing debt settlement is a complicated matter. Depending on the amount of accumulated debt, this may involve the contacting of dozens of collectors and agencies that all have the same goal. That is to get your money and pay them off. This may seem counterproductive as the whole reason you want to settle this debt is to get the collectors off your back. There certainly are means to do it yourself but a majority of those who attempt debt settlement on their own fail. Here are some steps to take towards relieving debt through a settlement process.

Seek Guidance

This first thing anyone should do when considering a Debt Settlement is to seek out sound advice and legal counsel. Sometimes, debt settlement can be tricky and having somebody on your side will help in making proper decisions. This counsel should be somebody who is an expert in this field and can act as your liaison in settling your debt. Together, you’ll commit to a plan that not only works for you but pays off those debts.

Be Truthful

This is an important responsibility on your part. Seeking help for debt settlement is a humbling experience. Your guides aren’t here to judge you. Their purpose is to help you. The only way that can happen is if you’re completely honest about your debts and your income. Should you acquire more information about debt that you previously were unaware of, give this information immediately to your adviser. Everyone makes bad financial decisions from time to time and in this economy, it’s easy to fall behind. The point of debt settlement isn’t to point blame, it’s to make things right.

Provide Contact Information

You can pin this note right next to the one regarding honesty. Be readily available to be contacted or at least have a means to be contacted regarding changes in your financial debt situation. Should your representative or debtors not be able to contact you, this will feed the doubt of your honest intent to settle the debts. Anytime you move or change and a contact phone number, let your adviser know immediately. Setting up an email address specifically for this process is advised. This allows you to be contacted at any time regarding your debt collection and by setting up a separate email box; you keep important messages and information from being lost in your regular email.

Understanding the Plan

Before any money is paid out, a debt collection plan is drawn out. This plan is a statement of good faith that you intend on making positive ground on paying off your debts. If you were completely honest and provided as much information as you could give to your best knowledge, a decent settlement plan can be worked out. Understand the conditions of this plan and if any of it seems unfair or as if you can’t meet the terms and conditions of the plan, speak up.

Dealing with Collectors

Many debt collectors will simply want your money and be done with you. Others will mask sincerity with a hidden message for you to pay. When you announce that you can’t pay at the moment, they’ll switch their tone. In many cases, this is not only demeaning and meant to scare you into paying what you can’t afford but it is also illegal. Politely decline the offer for “help” and gather as much information as you can. Then relay this information to your debt collection advisers.

The problem with taking on debt settlement yourself is that the debt collectors know how to get the most out of you. They use emotional and often abusive tactics that force debtors into submission. This is often not in the good for those paying the debt off. Arrangements made almost always benefit person collecting the debt. By seeking professional settlement counsel and having them work as a liaison, you allow yourself the freedom from the harassment and you leave the collectors powerless.

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