For a person facing the problem of huge debt burden, a proper debt settlement advice is the best thing that could happen to him. With the increasing number of defaults in debt repayment due to recession, there has been a substantial growth in the number of persons and companies offering debt settlement advice. There are various debt settlement companies and advisors in each city but you should carefully choose one that is most competent to take care of your financial interests and can help you to come out of the debt trap in a convenient manner. Debt settlement companies are basically of two types- those working for profit and other are the non profit debt settlement companies established by the government to help the indebted people.

All the debt settlement companies have qualified and experienced financial experts who devise suitable plans to help you to pay off your dues in a shorter period with attractive relief in the original debt amount. Debt counselors negotiate on your behalf with your creditors to win a considerable concession in interest rate or loan amount or sometimes both of these. As these experts are well equipped to negotiate and have all the necessary information with them, the creditors also prefer to talk to them. Debt settlement advice helps you to square up your dues in an easy manner rather than going for bankruptcy.

Debt settlement advice can be sought in case of an unsecured credit facility like credit card dues, medical bills, store cards etc. it can not be exercised in the case of secured debts like home loan or car loan where the creditor has got a valid charge over your movable or immovable property. Debt settlement is always a better option than a debt consolidation loan as the later makes you to pay the dues over a longer period which may run up to five years in a few specific cases. Whenever you seek for debt settlement advice you should present a true and correct account of your debts in your own interest.

You should carefully go through all the terms and conditions settled under a debt settlement advice and stick to these in a proper manner. Any deviation on your part may deprive you of some concessions or benefits and may also damage your credit ratings. A well devised debt settlement plan may get you rid of your credit worries soon.

Credit card debt settlement (Pros and cons)

Credit card debt settlement

credit card debt

Today any type of debt and repaying it can prove to be a frustrating task for every person whether it is secured debts or unsecured debts like credit card debt. If you are under the pressure of debt then that you will not be financially sound, and your mind will remain tense until you go out and search for any credit card debt solution. This process is perfect to repay your credit card debts. However, it is recommended that before you choose any settlement you should perfectly know the pros and cons of the settlement. If you perfectly know about the pros and cons then definitely it will help you to take fair decision.

Pros

1. Lowered Interest Rates: If you directly approach your credit card company and ask them to find the middle ground on interest rate, then definitely you may gain the advantages of paying your low interest rate per month. This all will happen if your company agrees with you and if they agree once then definitely you will be able to manage the financial funds and also you will not face any further problems.

2. Savings: If your interest rate is lowered down then automatically the monthly payment will also be lowered down resulting in saving of huge amount of money each month.

Cons

1. Extra or More payment: If your monthly interest rate is lowered down then your duration of repaying your debts will be automatically extended and may be you pay your bank more than the exact amount.

2. Another Loan Doubted: During your ongoing debt you will not qualify for any further loans or unsecured debts. However, there are some financial institutes out there nowadays those who offer loans in such situation but the interest rate of such loans are quite high.

3. Credit Counseling Problems: Normally to negotiate with your creditors there are various credits counseling companies and debt consolidation companies out there. But some may quotes interest rates that will be useful for their companies but not beneficial for you. In such situations it can be a serious problem.

4. Paying for a long term: This may be a pro for some people and for some it is like a con. It is pro for those people who don’t possess enough money to repay their credit card debt but possess ample amount of time to repay their debts. Conversely, it is con for those people who possess neither time to repay their debts nor money.

Debt Settlement Advice

Debt Settlement Advice

Debt Settlement Advice