Debt Relief

Debt Settlement – How to Negotiate and Get the Best Settlements

Debt settlement is available to many Tucson residents who have more than ten thousand dollars in unsecured debt they can’t pay. Unsecured debt, that uses no security, is not eligible for debt settlement, though you can use a debt consolidation service or a debt settlement advisor to negotiate with creditors and lower debt and fees. Unsecured debts generally include credit cards, department store cards, gas cards, IRS student loans, medical bills, personal loans, and unpaid utility bills. If you aren’t sure which service is right for you, there are several good resources for finding the answers you need. The Association of Settlement Companies and the National Foundation for Credit Counseling Services are good organizations to consider, as are consumer advocates and lawyers. You can also contact the Arizona attorney general’s office and the state consumer debt relief office for information and helpful resources.

As most debt settlement professionals will tell you, the primary goal of their business is to reduce your monthly payments and get you debt free in as short a time as possible. They can’t do this if you don’t cooperate with them and show them that you can’t afford to keep making those payments. If you owe more than ten thousand dollars and you haven’t made a single payment in over two months, it is probably time to find a new solution if you want to settle debt for less than you owe. You might even qualify for an offer in compromise, which means your creditors will agree to accept less than the full amount you actually owe in return for your consent to make one monthly payment after they recover their losses. The creditor may also agree to accept a lesser monthly payment if they recover some of their money from the individual that owes the debt, but this is rare and only happens in about five percent of debt settlement situations.

Another option to consider if you think you may qualify for an offer in compromise is a debt settlement agreement that allows you to pay a smaller amount than what you actually owe to your creditor. While you may not owe as much as the entire amount of what you are settling, you could possibly settle for less than half of what you owe if you are able to negotiate a deal that benefits you more financially than losing your home and paying all the creditors that you owe money to. If you cannot come to an agreement with your creditor, your options are even more limited and you may not be able to settle your debt for less than half of what you actually owe.

A debt settlement or debt consolidation company will help you negotiate your debt settlement or debt consolidation loan with your creditors. When you first contact a debt settlement or debt consolidation company, they will ask you what you owe and what you can afford. They will then begin negotiating on your behalf, trying to reach settlements with your creditors that will benefit you. You will need to make a monthly payment to the debt settlement or debt consolidation company until you have reached a settlement that benefits you. If you cannot afford to make the full monthly payment at this time, your options will become even more limited.

There are a few different methods that debt settlement and debt consolidation companies use when negotiating with your creditors. Some companies use debt negotiation letters that threaten your creditors and offer to settle the debt for a fraction of what you owe. Others use debt settlement negotiators that can contact your creditors on your behalf to negotiate lower payments and less interest.

Debt relief company in Tucson are very effective and can help you get out of debt faster. If you are thinking about consolidating or taking out a new loan, it is very important that you contact a debt consolidation company in Tucson to discuss your situation with them. They can give you advice and tell you what you can do to improve your chances of success. They can also prevent you from making the wrong decisions that could hurt you and your credit.