Debt settlement with creditors
Economic issues have hit all Americans in one way or another. Some have been hit in a dramatic way as some are just feeling the strains. Regardless of one’s situation it seems we are all struggling in one way or another. Job layoffs or cuts in pay make it tuff to keep up with our household expenses not to mention our credit cards. Perhaps the most frustrating part that consumers are feeling when it comes to their debts is trying to reason with the debt providers. Nothing is more frustrating than to try and reason with debt management companies that you have faithfully been paying minimum payments to for years. After all of this faithfulness on your part and the creditors do not care what your story is they just want the payment. It would be nice to hear “we understand and we will do whatever we can to help” but this is not a reality. When payments are missed or late these creditors don not hesitate to up ones minimum payment and interest rates. The only thing that is accomplished by doing this is putting the consumer in a more stressful unrealistic position.
Some consumers may be successful when trying to lower their interest rates but this is very rare. The only way to accomplish this is if you have a perfect credit history with them and at times this is still not enough. The final outcome is that nothing gets resolved and now the consumer is looking at collections, being sued or bankruptcy. When trying to reason with these credit card companies and trying to come to a settlement the same applies it is almost impossible to come to an agreement. When and if an agreement is made the terms are ridiculous. They are willing to make settlement, but on their terms and only theirs. When they decide what a good settlement would be they want the money now and upfront. They will not offer any type of a payment plan of any type. This does not make any sense, if the consumer had a couple grand lying around they would most likely not be behind on their minimum payments. It is in the best interest of the consumer to find a debt settlement company to help them in the settling of their debts.
Debt settlement companies are able to approach the manner in a different way. They know all of the strategies that these creditor use. They are able to come up with a settlement that will benefit the consumer as well and make it affordable. The consumer is able to make a payment on the settled balances once a month which is more achievable for the consumers. Debt settlement companies will negotiate the debts down by a considerable amount while getting an affordable minimum payment as well as dropping all of the interests rates. When the interest rates are dropped the consumer can pay the debts off in a more reasonable manner and pay more at any given time without penalties. Having a good company to back when making theses settlement offers is a very beneficial financial strategy.
[ Page 2: Do it yourself debt settlement ]