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Remove your uncertainty, know what to Avoid and be Debt Free
One of the certain things in life is uncertainty. We can never know what lies ahead. More often than not, we plan good affairs but there are just times that fate does not come in a way we want it to. Money matters fit in this subject. A person’s financial status is so unpredictable. A proof of that is the presence of debts. Uncertainty is not a very positive thought since there is always the hesitation, doubt and worry. In the matter of money owing, the element of uncertainty always exists both on the part of the creditor and debtor. Though there may be papers present especially if the creditor is a bank or a company, it is still not enough to ensure that everything will be done accordingly as planned or as stated in the agreement. The best example of this is when the debtor fails to finish paying his dues to the creditor. This is the part where debt settlement comes in to somehow fix the uncertainty and put both parties at ease.
Debt settlement which is also known as debt negotiation or debt arbitration is an approach in which the debtor and the creditor negotiate and agree on a reduced balance. It happens when the debtor stops paying the monthly installments for his balance due and as that happens, interest make the balance grow larger. Debt settlement is used by the debtor to avoid lawsuits and unwanted calls from credit companies and collectors. For the side of the creditor, they agree on the process of debt settlement to at least recover the fund instead of not recovering anything at all in case the debtor declares bankruptcy. When that happens, the creditor won’t have any choice. The debtor himself can contact the credit company and communicate with them. But that is not a very ideal approach. Usually, debt settlement companies are contacted and hired by the debtor to make the negotiation for them. The debt settlement company make a deal with the creditor in behalf of the debtor.
The set-up is almost perfect. That is if you chose the right debt settlement company. There are not so many debt settlement companies as compared to the number of credit companies but in their bunch, a lot can be fraud. Fake companies charge abnormal fees. They talk and convince their client by means of low fees at first. And then, when the debtor has agreed to hire them, frequent charges are made but no resolution regarding the settlement is actually accomplished.
Along with that is not analyzing carefully the success rate of the debt settlement company. These are the worst mistakes a debtor can make. Instead of fixing the debt problem and saving more money, you would actually be wasting more. Before hiring a debt settlement company, it is important to research first on its authenticity and success rate. Do not be deceived by low fees on services and promises of making you debt free in a blink of an eye.
Also, the time of getting into a debt settlement program is vital. You should know when the right time for a debt settlement program is. Commonly, it is advised when you already have a charged-off balance and is few moths delinquent with your dues.
It is a sure thing to feel good, like you are into a fresh start once you have finished the process of paying for your balance. To do that, avoid those mistakes mentioned above. Otherwise, be ready to face the consequences and lot more of uncertainty.