Hamilton Debt Relief, Credit Card Debt Solutions and Management
When a person becomes burdened with excessive debt and is unable to meet their monthly payments, one form of debt relief that is available to help eliminate their balances is debt settlement.
Debt management at www.hamiltondebtrelief.com
Working With A Debt Relief Company. Working toward debt freedom can be overwhelming, especially if you have a lot of debt. Sometimes it is best to seek the help of a qualified debt counselor. They have experience in dealing with creditors and can negotiate your settlements for you. The debt counselor will contact each of your creditors acting as your representative, present a reduced amount to serve as settlement for your debt and then it is up to the creditor to accept the proposal, reject it or offer a counter proposal. Once a settlement amount is agreed on, your creditor acknowledges that it will serve as payment in full once all payments have been received. Then you will sit down with your debt counselor and work out a payment plan that fits within your budget.
Once you decide on a payment plan, you will make monthly payments to the debt counselor's firm that are placed in a trust account through a third party bank or financial firm. A portion goes toward paying your program fees and the rest is held to pay your creditors. Once the total settlement amount has been deposited in your trust account your creditors will receive a lump sum payment to satisfy your debt. Once this is complete you should receive a statement confirming that the debt has been paid in full. Keep in mind that during the program your accounts may continue to accrue interest and incur late fees since no payments will be made until your lump sum settlement amount is collected and paid to your creditors.
Negotiating On Your Own. If you choose, you can try to negotiate with your creditors on your own. You will need to contact each company and advise them of your circumstances and present them with a settlement proposal. Your creditor then has the option to accept your offer, reject it or offer a counter proposal. If you are able to come to an agreement you will make monthly payments directly to the creditor since you are not working with an intermediary. Although it works pretty much the same once an agreement has been reached, it can be very time consuming and frustrating getting to that point. If you decide to go it on your own, you will need to do an inventory of your total financial situation prior to contacting your creditors and determine what you can actually afford to pay them each month. Be thorough and make sure that you will be able to live up to the agreements you make.
Effects On Your Credit Score. Settling your debts will help you to reach debt freedom but it will also have a negative impact on your credit score, at least for a while. Unlike bankruptcy, which stays on your credit report for up to 10 years, a debt settlement only stays on your credit report for up to 7 years and once you complete the program your credit score will begin to rebound. Although the fact that the accounts were settled will show up on your credit report, accounts show they are settled for less than the full balance.
Debt Settlement. What the process involves is working with creditors to reduce the amount owed in order to get debts paid off in a period of between two and four years in most cases. The two most common methods of settling debts are through a debt settlement firm or working directly with your creditors and negotiating on your own.
08:36:35 April 21, 2014