Thousands of people look for debt settlement for consumers. This is because of the fact that settlement does not have the negative impacts which are associated with bankruptcy. Settlement ensures that the consumers retain their credibility and that they stay as prime consumers after settlement is over. There are several things that you need to keep in mind and follow before you go for a debt settlement. These are:
- The overall debt that you have must be at least $ 10K and this is because of the fact that this amount has been set by the law and you need to abide by the same. In case your debt is less than that, you will not be entertained.
- The next important thing to keep in mind is that the debt must be consolidated in one place. It should not be left scattered. This is because if you leave it scattered, you will have to go for settlement for each individual debt. There are chances that each individual loan will not reach $ 10K mark and also individual settlement will mean greater expenses and longer time!
Once you are equipped with these, you are ready to protect yourself from debt. Simply hire a professional settlement company. A professional company has a complete knowledge of the banking system and it knows how far to push the creditor to get a good deal for you. The negotiator from the company will ask you to go delinquent in order to prove that you are in a financial trouble. Do as advised! The creditor will then wait for 3-4 months and then sell off the debt to a collection agency for as low as 20-30 cents on the dollar. The negotiator knows exactly when this happens and then contacts the creditor with a better deal of 30-50 cents on the dollar. The negotiator also threatens the creditor of bankruptcy in case the deal is declined by the lender. The creditor will never want bankruptcy and will accept the deal on the ground that it will be 100% ROI for the collection agency and will eliminate at least 50% of the debt that you have. This is how you protect yourself from debt by using debt settlement for consumers.