Debt settlement is great for someone who’s struggling with excessive credit card debt. But why signup for a program if you don’t know how the service works? At Gateway Debt Relief, our first goal is to educate or customers on how debt settlement works and walk them through the process of settling their debt and rebuilding their credit profile. Here’s a great breakdown about how our program works and hopefully you can determine if a debt relief program is exactly what you need!
Debt settlement is a process where a debt negotiating company or debt settlement agency negotiate a business or an individual debt with his or her creditor for the settlement of an amount lesser than the original debt owed.
In carrying out the debt settlement process the debt company will ask the debtor to contribute a percentage of the debt which will be paid to the creditor as lump sum if settlement is agreed. Some settlement companies can help save up to 40% of total debt owed. Once you become a client of Gateway Debt Relief we’ll work to get you the best settlement percentage of any company in the business!
For a creditor to agree to any terms of settlement he must be convinced that a debtor is unable to meet up with payment of his debt. The best way he can confirm this is if the debtor is behind in payment. This can be very bad for the debtor because it will appear on his credit file that he is not meeting up with his payment.
Is A Debt Settlement Service Right For Me?
People keep wondering if debt settlement is right for them. The fact is, debt settlement is right for people based on their circumstance. You want to consider carefully you financial circumstance and any future financial commitment before you go for a debt settlement program.
For your creditors to accept settlement terms with your agency you must be behind in your payment and be able to prove to your creditors that you are in financial difficulties and cant meet up with your payment.
If your creditors are convinced they will agree to a settlement term with your agent. You may be able to save up to 40% of your total debt. Best of all you can get out from under significant credit card debt and start fixing your FICO score!
The problem with debt settlement program is that when you are behind in your payment it will appear in your credit record as miss payment. Not only that, but you’ll be in default on your credit card payments and your lenders can attempt to collect on the debt. That means they can threaten to garnish your wages and attempt to collect your debt through other ways that you may not want to deal with. When a settlement terms is agreed and payment is made it will appear in your credit record as settled as agreed.
These two statement will remain on your credit record for a very long time. In future it can discourage creditors from giving you credit facilities.
This does not mean that a debt settlement program is bad. Like mention earlier, it depend on your situation as a debt relief program can be a great option for anyone who’s already behind on their bills as there’s no real difference from that with a debt negotiation. If you are heavily indebted and you are looking at the option of bankruptcy then it will be better if you can avoid it through debt settlement program.
Will A Debt Settlement Program Help Me To Become Debt Free?
If you consult a very reliable debt settlement company, Yes you can get out of debt if you meet their requirement, follow the program instructions and pay off your debt according the quoted terms. Debt settlement is not for everyone and it can be tenuous program if you’re not behind on your payments or if you are having no trouble making the required payments. In this case, it’s probably best to continue making your payments and maybe consult with a credit counseling company to see if they can lower your interest rates.
Note that debt settlement is not total debt cancellation. You still have to pay a percentage of your debt. In most cases we can settle your debt for at least 20% of the amount owed and sometimes those settlement amounts can be much higher. Gateway Debt Relief is here to help our customers become debt free in the fastest timeframe possible. Call us at 888-560-0132 to see how much you can save with our debt reduction program!