Debt Settlement Massachusetts
Debt Settlement Massachusetts MA- Solutions and Help
Debt Settlement For MA
Debt settlement, or debt negotiation as it is otherwise known, has become quite popular in recent years. Many people who find that they can no longer handle their debt are turning to this process so that they can eventually start on a clean slate. Because they cannot pay their whole debt, it allows them to make a one-time payment of part of the debt and this is considered as having the debt in full. In other words, your creditor allows you to pay them less than you owe.
Why would a creditor take less than they are owed?
That is an excellent question because everyone wants their debt paid in full, right? There are 2 reasons. The first is that they themselves could be cash strapped. They want to bring in whatever they can even if it constitutes just part of the debt. They will, however, not go past a certain minimum. The second reason is that they are afraid that a debtor may never be able to pay their debt at all, and they are willing to take whatever the debtor can offer now and write off the rest.
How it works
The first thing that you need to do is to find a debt negotiation company and open an account with them. The reason why you need a debt settlement company is that they will help you save up the amount that is required and they will also negotiate with your creditors on your behalf to take the amount that you are prepared to offer. The account is linked to your bank and you get to decide how much you can spare and it is then deposited into the account each month for 6 months or however long it takes to accumulate the required amount.
In the meantime, the debt settlement company will be negotiating with the creditor to bring down the amount of debt that they are demanding. When an agreement is reached and the right amount has accumulated in your account, the money is then transferred to the creditor and they in turn write off the balance and strike you off their debtors list. The debt settlement gets a fee from you for their services.
How does it compare to debt consolidation?
Debt consolidation is an entirely different process. It requires that you put all your debt together and then make a monthly sum. It also requires the use of an agent to make the transaction. Consolidation allows a debtor to save on interest and it also allows for the debtor a longer time to pay off their debt.
Both debt negotiation and debt settlement have their pros and cons. To know which is best for you, you should talk to a debt management expert. They will look at the kind of debt that you have accumulated and also your current finances and assets and then advice you on which route you should take.
Are there advantages to debt settlement in Massachusetts?
Definitely; so long as you can come up with the monthly payments that accumulate into one large payment, you are getting a substantial portion of your debt reduced. Other than the reduced financial pressure, you will also feel psychologically free.
Are there disadvantages to debt settlement in Massachusetts?
If you are in debt, most options that are offered to help you out come at a certain cost. With debt settlement, the first thing that you must understand is that your credit rating will be negatively impacted and it will stay that way for a number of years. This means that it will become very difficult to get any kind of credit, even for basic things like rent and cars.
Also, you have to hope that the creditor accepts the amount that you can raise. If they reject it, you will be right back where you started. It is important to point out here that some debt management companies discriminate. You will find some, for example, that deal in amounts $10,000 and up. If you have smaller debt, it might be useful to consider alternative ways to deal with it.
Other than these cons, debt management is a great option to get rid of debt so long as you have a monthly income to help you get together the amount that’s required by the creditor. You can get help with debts like: IRS tax debts, student loan debts, credit card debts, medical expenses debt, commercial business debt, mortgage debts.
Debt Settlement Massachusetts MA- Solutions and Help
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