Debt settlement (or debt forgiveness) is an alternative to debt consolidation and bankruptcy. During debt settlement, the consumer offers to settle the debt with the creditor for less than the original amount owed. The creditor has an incentive to accept this offer if they think that the consumer's only other option is to declare bankruptcy; for if the consumer declares bankruptcy, the creditor stands to loose all the money that they loaned to the debtor. Debt settlement may or may not have an impact on the credit score depending on how it is handled. In some countries like United states, consumer debt settlement has become a big business for attorneys as they may collect fees of up to 15% of the settled debt.
Contrary to popular belief, it is not necessary to obtain the services of an attorney or third party to settle debt, although the extra financial advise or services may be beneficial. You yourself may negotiate a settlement directly with the creditor. MSN Money offers several excellent tips for negotiating with debt collectors.
Related News
David Prosser's Outlook: BAA manages to avoid a bumpy landing (Independent) - Sir Nigel Rudd had a difficult job yesterday – in private, BAA's chairman must have been cock-a-hoop at the airport pricing settlement from the Civil Authority Aviation. In public, he had to maintain the demeanour of a man who believed he had been hard done by, if only to save the CAA some embarrassment.
Eliminate Credit Card Debt (The Bradford Era) - (ARA) - You've heard the old adage, pay down your credit card debt each month to avoid the nasty interest rate charges and fees that result from revolving balances.
Troubled BAA looks to bonds future (Daily Telegraph) - Airports operator BAA has admitted its planned £10bn refinancing may have to be restructured, despite receiving a five-year regulatory settlement condemned as too generous by the airlines.
A Look Back in Time: Debt enslaves (Casper Star-Tribune) - We are all master and slave to it -- it is the crucible of commerce and in every deal, who is the master and who is the slave depends on who has more wampum. Money was in the news for the second week of March.
Councilor settles ex-employer's suit (The Republican) - SPRINGFIELD - City Councilor Patrick J. Markey has settled a lawsuit filed by his former employer over an old debt. According to a statement released today by Robinson Donovan, the Springfield-based law firm where Markey worked from 1997 to 2007, the dispute was settled under undisclosed terms.
Resources
American Financial Service - Debt Settlement - and save money by making debt settlement work for you. Our debt settlement program is actually quite simple. We negotiate your settlements for you.
Debt Regret - settlement services, debt settlement programs and credit card debt settlements If you need debt settlement, call us now or submit our FREE QUOTE form for a
Debt settlement (or debt forgiveness) is an alternative to debt consolidation and bankruptcy. During debt settlement, the consumer offers to settle the debt with the creditor for less than the original amount owed. The creditor has an incentive to accept this offer if they think that the consumer's only other option is to declare bankruptcy; for if the consumer declares bankruptcy, the creditor stands to loose all the money that they loaned to the debtor. Debt settlement may or may not have an impact on the credit score depending on how it is handled. In some countries like United states, consumer debt settlement has become a big business for attorneys as they may collect fees of up to 15% of the settled debt.