Frequently Asked Questions About Debt Settlement
Posted on: 17 September 2019
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If you are struggling to pay your debt, you may be considering working with a debt settlement program. Debt settlement programs involve settling your debt for less than you owe, discharging the remainder of your balance. This helps you to pay down your debt without filing for bankruptcy. If you are considering this option, you may have many questions. Here are a few of the frequently asked questions about debt settlement.
Do You Have to Be Behind on Your Bills for Debt Settlement?
You do not have to be behind on your bills to participate in a debt settlement program. However, many companies that offer debt settlement programs recommend that you stop paying your debts for a couple of months. If you are up to date on your payments and are paying the payments in full, a debtor has no incentive to negotiate a debt settlement with you. If you are behind on your bills, they may start to worry about never getting paid. This is when many are more likely to settle the debt you owe.
Can You Settle Secured Debt?
Technically speaking, any debt that you owed can be settled if the person or company you owe the debt to is willing to settle the debt. Any company also has the option of not settling the debt. They are under no obligation to do so. If you have secured debt, there is very little incentive for the debtor to settle with you. They can collect the collateral that you put up, so while they technically can settle if they so choose, must are not willing to settle the debt.
Do You Have to Work with a Debt Settlement Program When Settling Debt?
No, you do not have to work with a debt settlement program. You can contact your creditors and attempt to settle debt on your own. However, a debt settlement program works with lenders all the time. They know what percentage of debt certain lenders will discharge and what a fair settlement offer is. You do not, so you may offend lenders by offering too little, or you may offer too much and pay more than you need to to settle the debt.
Are you tired of getting harassing calls from debt collectors or feeling like you will never get out of debt? If so, a debt settlement program may be the solution you need to put an end to the calls and help yourself climb out of debt. Contact debt settlement companies like Century Support Services today to learn more about debt settlement and if it is a good solution for the amount and type of debt you have.