Debt settlement is the ultimate option for people who suffer from financial struggling with piles of debts waiting for them to pay off. Debt settlement means your debt is settled for less than the original amount you owe. You must pay a lump sump of the settled amount that is agreed with the creditor in order to be acquitted from your debt. Once you have paid the lump sum amount, it will be recorded on your credit report that your debt is settled. You can personally negotiate with the creditor to settle the debt for a lower amount. If you don’t have negotiation skills, you should not personally approach the creditor to negotiate for the settlement.
Most creditors are hard and they won’t listen to you if you don’t know how to negotiate with them. Instead of doing it yourself, you should outsource it to a debt settlement company. The debt settlement company has highly skilled staff that know exactly what to tell the creditor to persuade him to agree to the settlement amount. They normally will start negotiating with the creditor that you owe the least amount of debt. When a creditor agree to a settlement amount, they will transfer the money in the special deposit account as lump sum payment to settle the debt.
After the debt with one creditor is settled, the debt settlement company will move on to the next creditor. The debt settlement company will open a special account for you. You will be depositing a fixed amount of money into this special account every month. You should only sign up with debt settlement company that charge you fees only after they managed to get a creditor to agree to the settlement amount. If the company charge you fees before the settlement is reach, it is a scam because you will be wasting money on the fees if they didn’t get the creditor to agree to the settlement amount.
With so many scams around, it is important that you call the Better Business Bureau and check to see if the debt settlement company is BBB rated. It should also be recognized by other accreditation organizations such as AFCC and IAPDA. The debt settlement company must have been in existence for many years, for example 10 years, in order to be considered trustworthy. You should scan through the reviews of other customers who have their debts cleared by the company. You can find reviews of the debt settlement company on blogs, review sites, and forums.
If you want to know the top performing debt settlement company, you can visit the top 10 reviews site that offers expert rating on the top 10 debt settlement companies with the highest success rate in the USA. You should get quotes from 4 – 5 debt settlement companies if you are making a decision to use debt settlement as a way to solve your debt. There is an online quote request form at the debt settlement company site that you can fill in and submit. They will usually get back to you with a quote within a day.