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Am I a Good Candidate for a Debt Negotiation Program?
Debt negotiation program is not a blanket solution for everyone. You should fulfill certain criteria to be considered a good candidate for the program.
Who are suitable for debt negotiation programs?
Most debt-ridden people want to take the help of a debt reduction program in order to reduce their debt burdens. However, though such a program is really attractive, it may not be suitable for one and all. Not every debtor is fit for such a program. A debt negotiation program suits only those who have certain primary characteristics. Here is a brief account of these characteristics.
Hardship is a criterion
A person is a good candidate for debt negotiation program if he/she is in a position to explain the reasons for his/her getting into a debt trap because of a real hardship. There may be a number of reasons such as health problems, loss of employment, separation or divorce or any such emergencies that can leave a person with no other option other borrowing money from others to tide over the crisis. It must always be remembered that the hardship must be real and explained legitimately. Because if one fails to explain his/her problems quite convincingly, it is highly unlikely that a creditor will be inclined to enter into any negotiation to settle any debt.
A source of income is necessary
A debt negotiation program, no matter how good it is, becomes useless if one does not even have the amount required for paying the settlement. In usual practice, most debt negotiation companies offer to formulate a plan for you with the condition that you keep aside about 1.5% of the total amount of your debt. If this process is followed, you are likely to be free of debt in nearly three years. There may also be some people who will wish to join a debt negotiation program with a lump sum amount of money, or who can take loans from relatives or friends when necessary. The important point is that one must have the ability to save money for getting out of a debt problem.
No bizarre credit activity!
Companies offering a debt negotiation program inquire about a person’s credit activity before entering into a deal. If it finds that a person wants to enter into the program although he/she purchased a highly expensive luxury car only a month ago, chances are that his/her application will be rejected. Such extravagant purchases are never taken kindly by credit companies.
Commitment is welcome
Some people enter a debt negotiation program, but exit without finishing. They either lose interest in the program or look for some other alternative to solve their problems. In such cases, creditors naturally believe that they were taken for a ride and are extremely annoyed. So a person must be committed for the entire period of the program if he/she wants to be successful.