Consumer Debt Settlement

Consumer debt settlement offers a way for borrowers to reduce or eliminate unsecured obligations through negotiations with credit card companies and other personal credit lenders. If one carries heavy, unsecured obligations through charge accounts and other personal loans, there are many settlement companies that can help in a legal and productive manner. Consumer debt settlements can be accomplished by professional sources found online. A consumer debt settlement has become a favored alternative for many Americans who have outstanding personal obligations and are unable to meet their repayment amount.

Most Americans who are considering consumer debt settlements, find they are in excess of $10,000 of unsecured debt through credit card charges alone. An overwhelming number of households are paying between 18% and 24% finance charges on charge accounts and resorting to paying the interest charges each month without touching the principal. A consumer debt settlement option may provide the relief needed. For those who are having financial hardship through many unforeseen circumstances such as illness, divorce or job loss, using an agency can provide a welcome relief. "Behold, thou desirest truth in the inward parts: and in the hidden part thou shalt make me to know wisdom" (Psalm 51:6). Ask God for wisdom and guidance concerning money matters.

Companies, law firms and non-profit agencies offer options for personal, financial solutions. Some alternatives include consolidation loans and restructuring a household budget. But for those who need crisis management, debt settlements are a way to pay off all financial obligations and begin to repair credit history without filing for bankruptcy. A competent, credit counseling company can provide a professional arbitrator who can negotiate with lenders a reduction of overall obligations for pay off. Sometimes securing as much as a 60% overall debt reduction, meets the lender's requirements.

Sometimes, if one is unable to agree to repay up to 85% of a consumer debt settlement, credit card and other lenders will agree to report a balance with them "Paid as Agreed." This will clear up one's credit report instantly and credit history can be repaired. Consumer debt settlements that are negotiated for less than 85% are harder to negotiate a positive pay off status, however not impossible. A proficient arbitrator may sometimes be able to negotiate an agreement for a "Paid as Agreed" pay off status for a less percentage, depending on the lender's willingness. These solutions can be effective because most lenders are happy to receive some pay off as opposed to nothing.

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