5 Debt settlement strategies you should know
When debt becomes a curse in your life, you should take immediate steps to settle it. You can settle your debts through a debt settlement program. Debt settlement program helps to reduce your debt load by 40% to 60%. You can either settle your debts on your own or you can appoint a debt settlement company. Debt settlement companies charge professional fees for their services. Hence, if you do have excellent negotiation skills, then you should settle your debts on your own. Go through this article to know about 5 smart debt settlement strategies.
Debt settlement strategies
The 5 debt settlement strategies you should know are given below:
- Figure out what you owe: At first, you should figure out your total debt amount. Also, make sure to calculate the interest rate of the loans and your minimum monthly payments. When you have done so, calculate how much you can afford to pay to the creditor.
- Start saving: As soon as you know about the total amount of debt, start saving money. You must save at least 50% of the debt amount or creditors won’t even agree to negotiate with you. Try to increase your cash flow. Cut down your luxury expenses. Your goal will be to save as much money as possible.
- Call your creditors: Call your creditors and explain your hardship situation. You should request them to lower the payoff amount. You can tell them the amount of money you can afford to pay. You should also inform them the date by which you can make some payment. If the creditors refuse to budge, then you should tell them that you have no option but to file bankruptcy.
- Debt settlement letter: Next send a debt settlement letter to the creditors. In the letter you should specify the total debt amount and the interest rates of the loans. You should also specify the amount you can afford to pay. The letter should be written well. So, if you don’t have any idea about how to write a settlement letter, then you should hire an attorney. They know how to write a perfect debt settlement letter.
- Written document: Once you have settled a lump-sum with your creditors, you should ask for a written agreement from the creditors. The reason is verbal agreements are not legally binding. Read the terms and conditions of the document in detail.
Finally, you should maintain calm and poise throughout the debt settlement process. You should keep in mind that creditors are not bound to lower the payoff amount. They might behave rudely with you, but you have to tolerate it as you are in the receiving end.
Description: If you are unable to pay off your debts, then you should opt for debt settlement program. This program helps to reduce your debt load.
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