Examining Debt Settlement
Debt settlement is confused with financial management. The two are in fact quite different in how they work. I understand your worries about settlement. To help you avoid debt settlement scams I review companies offering debt relief like debt settlement. The who, what, where, when, and how of credit issues are explored as well as an introduction about what I can do for you. I feel it is essential for anyone to avoid scams or worsening credit issues. Being hounded is not enjoyable and neither is remaining in a bad credit position. It can be hard to trust an online company. Word of mouth and independent reviews can only do so much. My program to offer debt settlement USA reviews is not trying to sell you something. I am independent of the company and it cannot be said enough I will only provide reviews and rankings for companies that I trust. Any debt settlement services I recommend on my site have gone through a rigorous process.
Debt settlement will be defined along with what debt management is. This is in an effort to help you so that you will know exactly which product can help you the most. I have worked in this industry for several years, offering my services to companies that offer you solutions to your financial burdens. I am paid by the companies I review for marketing advice. Settlement reviews can help you learn about a company. The difference with me is that when I review a company I do not feel comfortable taking payment unless they meet my criteria; therefore, hopefully your standards about debt settlement are met.
As I mentioned there are two types of financial solutions often confused: debt settlement and management. I will define both, so that you can understand the differences between the two. Debt settlement is where you pay off your creditors with a lump sum. This lump sum is usually 50 to 89 percent lower than the amount owed. If you owe $100,000, you might be able to settle for $50,000. Of course, this is providing you have savings to settle with. The key to debt settlement is that you are able to pay a lump sum, not that you pay out over a given period of time. This process does not work for everyone. Given that you are required to have a lump sum for the payment amount, you have to act earlier with your debt issues than you might for other solutions. Keep in mind that with certain solutions you do not have to undergo bankruptcy, but you have more leeway in paying the debts off. Consolidation is one of those choices. You can consolidate your debts with a payment over time or a lump sum. Let the debt solutions work best for your situation by picking the correct one.
Using debt settlement if you do not have savings means the company or companies will not let you negotiate for a lower amount. They will want you to pay the entire amount in full even if that means paying a minimum payment for three decades. Debt settlement is not for everyone. Since it requires having a lump sum to give to the creditors, you either need savings or a consolidation loan. Working with an agency to negotiate for you typically means they have consolidation loans to offer you. In this way you can use debt settlement to negotiate down your amount owed, obtain a consolidation loan to make the lump sum payment, and then pay the debt relief company. You should use a company that has the most advantage for you with regards to settling your debt. If you can get a loan to pay off the lump sum amount owed this can be helpful with the right company. You do have to be wary of the interest rate requested for the loan, which is where my reviews can come in to help you even more. My reviews look at companies willing to offer fair debt solutions to your troubles.
If you do use debt settlement with a consolidation loan you often pay a monthly payment plus interest to the debt help agency. You also pay a fee for the services provided to you. It is in your best interest to choose an agency that will settle your financial affairs all at once rather than one which settles each one separately in order to save money on the commission for settlement. This is completely different than management options, which is why that needs to be explained next before we look towards debt settlement companies to help you out.
Management differs from settlement in that you are paying out over time. You set up a budget where you pay a little more than the monthly payment for one creditor. You do this until the creditor has been paid off. Already you can see the differences between this and settlement. In this manner you do not negotiate, but create an arrangement on your own with a little help from the debt settlement company to see where you can save and start sending even more to one company.
The theory behind this option over debt settlement is that as you get one paid down, you use that money towards the next one, paying even more per month than you could have before. You repeat the process until all the money you were paying towards debt is now yours to save. Settlement clears it up in the beginning. Your financial burdens are over quicker when you use settlement versus management.
It is nice in theory to believe you could end your debt troubles all at once. Sadly, for someone who has waited too long or does not have any savings originally it is going to be harder to negotiate down. At the point you reach this harder situation for negotiation, you are also on your way to losing your good credit standing.
It is understandable that you might not want to face your debt issues. You might wish to avoid the situation because you are embarrassed or you feel as if you have failed. Things happen to you whether it is a loss of job, health issue, or something else. It is hard to live life, so you have not failed just because you are in a financial crisis. A failure to act will worsen the situation, so acting as soon as possible is important. Make certain you act while you can get a better solution to your situation rather than letting your debt snowball.
Best Choice for Debt Settlement
The first is National Debt Relief. This company will handle all of your financial burdens at once rather than piecemeal. They were founded in 2002 and have successfully helped thousands with debt settlement procedures. Take your time to read through the testimonials and my review to find out more about their services and their willingness to help you.
CuraDebt is another company that has helped by offering information about debt help. They often have counselors on hand too. Counseling is a helpful procedure to undergo even if you are beyond the first stages of credit troubles. Counseling can help you avoid further issues in the future by curbing your spending habits. CuraDebt can be of great help in that respect, as well as the other debt solutions they provide you.
Debt Consolidation Care is a company I would recommend as the third choice for debt settlement. This company offers a good amount of help to those who need it by negotiating with a list of creditors they work closely with. They have worked hard to establish these customers for debt settlement purposes.
By now you have read through the above information and seen the introductions to three debt companies. You should have an understanding of what settlement versus management is, as well as what can be of most help to you. You want the solution that you can achieve, so please continue to read through regarding testimonials and my own reviews to see what other questions you can get answered here. I want you to be debt free as soon as possible too, but also keep the above points in mind. Settlement may not be the correct solution given your current state. Many of the companies reviewed tend to offer more than one service or product. Eagle offers you counselors, as well as settlement. Look for the things you can use the most with regards to credit issues you have.
It is in your best interest to compare the different companies and read reviews about them. My reviews are based on the company that I have studied and the people I have met. I do not write about any company I have not studied. This helps you to trust me regarding any debt settlement needs you might have, especially when it means being free of financial burdens quicker and easier.