Personal Debt SettlementA Debt Reduction Settlement is a process used by both debtors and creditors to settle a debt for less than what is owed. The process may also be referred to as Third Party Debt Negotiation. If negotiated properly on behalf of the debtor it can quickly and dramatically reduce the debtor's debt. Settlements typically range from 20% to 80% of the current debt, with the typical debt being settled for less than 50 cents on the dollar. To learn about Personal Debt Settlement simply scroll through this document, or if you prefer, use our Index to read about a subject of interest.
 An Intro to Personal Debt Settlement If you are a consumer with unsecured debt of at least $10,000, you may be able to reduce your debt 20% to 80% through a Debt Reduction Settlement. While a typical debt is settled for less than 50 cents on the dollar, how much you save will depend on numerous factors. Examples of the types of debt which may be settled include credit card debt, store charges, medical bills, service contracts, lease defaults, billing disputes, repossession deficiencies, signature loans, charge offs, past due utility bills, liens, judgements, attorney fees and debt stemming from lawsuits. Most any types of unsecured debt can be settled! The Center for Debt Management™ works in association with the leading third party debt negotiation agencies in the United States, Canada and United Kingdom. These select agencies can assist you in settling your debts at the most favorable terms! You can rest assured that these respective agencies will work to provide you with debt settlement and debt management services second to none. Please note that the debt settlement program and fee structure varies somewhat with each of the various agencies located within each country. What are the Odds of a Successful Debt Settlement? Together with our associates, we have helped thousands of consumers to save millions of dollars...often saving them from filing bankruptcy. In a Debt Reduction Settlement, over 80% of all debts negotiated meet or exceed the settlement objective desired by the client. There are numerous factors to consider when negotiating a debt settlement. Some of these factors include, the type of debt, who the creditor is, the amount of debt, how old is the debt, your ability to pay the debt as agreed, your assets and liabilities, and so on. But there is another important factor—the ability to settle the debt. Debt settlements often require up-front cash to settle the debt. For example, if you have a $1,000 debt, you may need $500 cash to settle it, although the amount could be more or less. Most debtors, however, do not have ready cash to settle their debt—and chances are, neither do you! It is important to understand that money obligations can often be settled over a period of time, settling each account as funds are raised. Later we offer various methods consumers use to raise the funds required to settle their debt. In addition, a debt settlement specialist can help you establish a strategic savings plan in which to use to chip away at your debt. Because of all the factors involved, the first step in the debt settlement process is to determine if you have money obligations which meet the requirements of a successful debt settlement. For example, you may have a half dozen accounts of which all of them qualify, some of them qualify, or none of them qualify. The only way to determine this is to analyze your accounts and weigh all the factors with your settlement objectives.
Later in this presentation, you will be given the opportunity to request a FREE Consultation. Over 80% of all debts negotiated meet or exceed client's objective. How to Raise Funds to Settle Your Debts Here are some of the most common methods that consumers use to acquire the needed funds, or sources to withdraw funds from, in order to settle their debts. Click on any item of interest for a brief description.
Consumers in financial distress typically raise funds to settle their debts by opening a mandated savings account, whereas money is deposited into the account on a regular basis. To accomplish this most debtors elect to stop making payments on their unsecured accounts, opting to place whatever funds are available into this special savings account. Note: When working through OUR associates, once enrolled in the program, the agency then contacts and handles the creditors until each debt placed with the agency is settled, thereby, preventing or putting an end to upsetting collection calls. When enough money is saved, a debt reduction settlement is negotiated for one of the accounts. The strategy, of course, is to first settle the account which is most troublesome and which may provide the greatest savings. The process continues in this fashion until
Do you have funds in a savings account or CD? What's 4%, 5% or even 10% interest, when you can save 50%. And not only might you reduce your debt by 50%, you'll stop high interest charges, and perhaps late fees and other related charges. Your past due accounts can all be settled and will no longer be reported as being delinquent.
If you have stocks, bonds, mutual funds or other forms of investments or equity, perhaps it's time to cash in your chips! Getting a 10% return on an investment is often considered great, especially these days. However, settling your debts, and thus stopping upsetting collection calls, stopping high interest charges and late fees—and saving 50% or more in the process will be like manna falling from heaven!
Many consumers in financial distress turn to friends and family for help. Especially when it is their only alternative to filing bankruptcy. You'll be surprised how often family members and friends are willing to step up to the plate and render assistance. The only way to find out is simply to ask.
Do you have a 401K plan, IRA, SEP account, annuity, trust fund, or other forms of retirement funds? Here you might need to consider various consequences, such as, a 10% penalty for early withdrawal, having to pay taxes on the amount withdrawn, and whether you really want to dip into your retirement account. If you can achieve a significant savings, or perhaps, save the farm, as they say, it may be well worth it!
If you have cash value in a life insurance policy, you can typically borrow from these funds at a very low interest rate. Best of all, you need not repay the loan. As a consequence of this, however, your life insurance benefit will be reduced by the amount you borrow and any accrued interest. But, being debt free, the reduced stress may add years to your life!
You may have valuable assets that can be sold to raise capital, such as, a motor vehicle, an RV, jewelry, antiques, a coin collection, furniture, etc. In some instances, it may even be prudent to sell your home. Remember, if you are unable to resolve your financial hardship through debt management or a debt settlement, oftentimes, filing bankruptcy is the only other available alternative. Should this occur, you may lose some, or all of these assets, except for those exempt by law.
While we do not endorse credit card cash advances, it may be considered prudent when the overall effect reduces debt. Let's say you have a $10,000 debt at 21% interest and being charged a $25 late fee each month. You have access to a credit card account with available credit of $5,000. You take a cash advance of $5,000, use the funds to settle the $10,000 debt. You now only owe $5,000, probably at no more than the 21% interest, and no longer are being charged late fees. On top of this, you will no longer be reported delinquent on your credit report! If you have significant credit available, you should consider this option. If you do not have credit available, perhaps a family member or a relative does, and will be happy to assist you.
If you own real property and have some equity in it, you certainly need to at least consider using it to settle your debt. Whether it's a viable option or not, will depend. Example: You have substantial equity in your home and obtain a $20,000 home equity loan. You are able to settle your $40,000 debt for 50 cents on the dollar. You reduce your overall debt by $20,000. In addition, the $20,000 may be tax deductible. Notice: We strongly suggest that you do not use this strategy without first consulting a Debt Reduction Specialist, and never by means of a Debt Consolidation Loan. You must use the correct procedure to ensure that the funds are used to settle your debts. In addition, this strategy should ONLY be used when it results in significant savings and
A personal loan may be secured or unsecured. For debtors in need of a debt settlement, however, collateral is typically required. While many creditor's require home equity, some accept other forms of collateral. One such creditor that accepts personal property as collateral and which has proved helpful to our clients is CitiFinancial. Notice: If a security interest is required, such as a car, this method should be used ONLY when it results in significant savings, and the effect of it resolves your financial hardship. You should be reasonably certain that you will never default on the obligation. Otherwise, it is not practical and financially sound to convert unsecured debt to secured debt and risk losing a valuable asset!
While sometimes this is easier said then done, you might try to increase your income by moonlighting, getting a part time job, starting a home-based business, or perhaps, if deemed practical, even changing your employment or career. Where there's a will, there's a way! Can I Negotiate My Own Debt Reduction Settlement? Absolutely! Anybody owing money may contact their creditors and/or a collection agency and try to negotiate a debt settlement. But while some consumers are successful in obtaining a fair settlement, others fail miserably. The fact is, most consumers do not have the skills and knowledge required to negotiate a debt settlement period, much less one that provides the most favorable terms possible. One of the problems in dealing directly with your creditors in a debt settlement is that in the process they will try to obtain as much information as they can about you. Failing to answer all their questions may prove harmful to the process. On the other hand, giving them certain information may result in a refusal of your request for a settlement, while at the same time, arm them with the data necessary to take action to collect the debt in full. Another favorite tactic is to shame the debtor into paying all of their debt. It works and is used all the time! A highly skilled third party debt settlement specialist knows the ropes and will provide only certain information about you which is likely to convince the creditor to settle the debt. Being a third party, the shame game cannot be played. Also, the debt settlement agency works on a percentage of your savings, therefore, will strive to get you the best terms possible. The more the agency can save you, the more the agency earns. And vice versa; the more the agency earns, the more money it saves you. You should also be aware that there are many financial and legal issues of concern that most consumers would not even think about. A Debt Settlement Specialist will handle these issues appropriately. If you believe you have the skills, knowledge and tact required to negotiate your own settlement, by all means go for it. But remember, even if you are successful, chances are the settlement and resulting savings will be less than that provided using a professional Debt Settlement Agency even taking into consideration the agency's fees. And if you fail in your attempt, it may be difficult for a Professional Debt Settlement Specialist to later rectify the harm done and to negotiate the most favorable terms. Why chance it! Debt settlements are best left in the hands of Debt Settlement Specialists What are the Fees for Debt Settlement Services? There are never any additional fees going through The Center For Debt Management.™ Any fees quoted you will be the agency's standard customary fee charged for the specific service rendered, including any set-up or maintenance fees. Because we work with various agencies internationally and rates vary, we cannot provide specific fee structures. Settlement fees, however, are charged on a performance basis. In other words, settlement fees are contingency-based. The agency does not bill by the hour as do most attorneys, but rather charges a percentage of the savings they are able to negotiate for you. If they do not obtain a settlement for you within YOUR desired range, there is no settlement fee. The beauty of this fee arrangement is that it is in the agency's best interest to get their clients the best possible deal. The more the agency saves you, the more the agency earns. And vice-versa, the more the agency earns, the more it saves you. This arrangement is truly a win-win situation for all concerned. Settlement fees are contingency-based. You are charged a percentage of the savings negotiated for you. If a debt reduction settlement is not obtained for you within YOUR desired range, there is NO settlement fee. Notice: Each agency is independently operated and may elect to alter their fee structure without notice. Are There Other Options If My Accounts Don't Qualify? For most debtors facing financial hardship and having significant debt, there is typically only three reasonable alternatives—enrolling in a Debt Management Program, seeking a Debt Reduction Settlement, or filing for Personal Bankruptcy. One of the most powerful aspects of The Center For Debt Management,™ in addition to the hundreds of debt management articles and resources provided through our website, is that we can assist you in all three areas listed above. When an applicant applies for the Debt Management Program, in analyzing their budget and financial profile we automatically review it to determine what is the applicant's best option. For example, a Debt Reduction Settlement may be a better option, or filing for bankruptcy may be the only option. Sometimes, all of the above may be viable options. Whatever the case, we either approve or deny the applicant for the program being applied for, suggest an alternative course of action and/or counsel the applicant accordingly. When applying for a Debt Reduction Settlement, if it is determined that your accounts do Because the Debt Management Program requires, what is called, "Full Budget Disclosure" you would be asked to complete a special budget, such as, Personal Budget Maker,™ One of the most powerful aspects of The Center For Debt Management™ is that we can assist you in enrolling in a nonprofit Debt Management Program, in seeking a Debt Reduction Settlement, or in Filing For Bankruptcy. How Do I Know If My Accounts Qualify and How Do I Apply? If you answer yes to the following questions, you may be a prime candidate in seeking a Debt Reduction Settlement.
If your answers are a resounding yes, the next step is to request a FREE Consultation. Upon completing a brief form and submitting it to The Center for Debt Management,™ The consultation is strictly confidential, absolutely free of charge and without any obligation. It will afford you the opportunity to get professional answers to your financial questions and any concerns that you may have. You have nothing to lose—except your debt! We thank you for taking the time to read through this presentation. If you take the next step by completing an application and you are accepted as a candidate, should you elect to become a client we promise you that the time spent will have been well worth it. This is YOUR Opportunity to get a Fresh Start and to
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