If your credit accounts are lagging behind due to insufficient funds and you see yourself under a drastic financial trouble, debt settlement is something which you ought to look for. Settling your different debts would never be an easy task. Persuading the collectors and negotiating with the best settlement amount requires intelligence and a firm approach.
You might have tried your hands for settling the different debts on your own and faced a failure due to lack of knowledge and experience. There could be a confusion in you to opt for a suitable help.
A specialized program known as Debt Resolution has proven as the best breakthrough for millions of debtors to come out as the winners with improved credit records. Let’s try to understand the specialized program and various features offered.
What is a Debt Resolution Program (DRP)?
This program has been designed by the world’s top financial experts for those who find themselves unable to repay monthly to their different creditors and look for an easier solution. You don’t require facing your creditors anymore. The program’s representative maintains communication with your all creditors. Your present financial standing and losses are discussed with them for the best possible settlement. The procedure to carry out this program is-
(i). Establishing an Escrow account
The debt resolution company starts the proceedings with the opening of an escrow account. This acts as a third party account where the service providing company starts working on your balances. You are advised to add finances in this account with your affordability. Once the account reaches the half of the total balance, the company starts the procedure of paying your each debt.
(ii). Notifications to the creditors
Once you have adopted a DRP, it becomes the company’s responsibility to send notices to all the creditors about your decision. All creditor calls and information are received by the hired company. You also maintain a close eye as the program provides transparency.
(iii). DRP management
The settlement organizations talk directly to the creditors. Negotiations are done by offering almost half to the outstanding debt. The settlement is not only with the full and final amount you can afford but also in the terms of duration you require. Many companies also begin the service by providing token amounts and partly payments to the creditors. But DRP is mostly done with the whole lump sum.
You get the best period of 36 months to pay all your past balances. Your debt gets reduced overall by 45%-60%.
(v). Effect on credit report
Your credit record is already suffering due to the negative scoring for various late and non-payments. The debt settlement company works hard and sends report to the credit bureaus about the settlements as “paid” and as “settled”. This helps your credit report to attain positivity.
Bottom line states that the debt resolution service is quite a great help but revival calls for better financial planning and wisdom to attain prosperity in life. For more info you can refer this site