Debt Settlement

Debt Harmony is an attorney-based debt settlement service that is committed to achieving debt freedom for its clients. Few lending institutions are willing to engage in debt negotiation directly with consumers. But with our debt and credit card negotiation experience, we will intercede for you; in many cases, we can help reduce your debt by as much as 50% to 80%. The content below offers further details about the benefits of debt and credit card settlement.

Creditors lend money with the intention of getting it back. They always try to recover default or charged-off loans in some way or other. Settlement is definitely an attractive offer and this helps creditors get their money repaid without spending funds for collection.

That is the reason most credit card companies and other lenders show interest in the debt negotiation process.

You can do it yourself too. Then you have to contact with all your creditors by your own to work out the process. Creditors and collection agencies often deny to negotiate with consumers. That is the reason people often report it is tough to interact with creditors and debt collectors.

However, a reputed settlement company can make the same deal working easily.

See what the benefits are, that a good settlement service can bring your way:

Principal debt amount: When a debt becomes delinquent, late fees, over the limit charges are accumulated with the total debt amount. So you have to pay high interest towards the debt. Majority of the firms negotiate with your creditors and restructure the debts that you owe. For example, in maximum cases 40% - 60% of the original amount is reduced, hence you can save thousands of dollars.

One monthly installment: In this process you have to pay a single monthly amount to a firm in order to settle all your debts. The more you can pay the lesser period of time you take to become debt free. The amount of your monthly installment is fixed by the settlement company based on your present financial status.

Time period: Most debt negotiation plans are sketched on the basis of extended time periods. In such cases you have the provision to extend the time span from 2 to 4 years or sometimes even longer. This is helpful for people who cannot afford to pay at one go. It is also less likely that you will have to fight the creditor later to actually delete the negative listing.

Avoid rude collectors: You can stay away from dealing with abusive creditors and harassing debt collectors and debt buyers. Forward all the paper works to your settlement company and let them handle the issues.

Right time to settle your debts:

It is very important to take the right decision at the right time; otherwise you might not have the full benefit of the program. Some specific cases are discussed below to explain how settlement is looked as your debt turns older.

One month delinquent: When you are just one month behind with your payment, your creditor might agree to reduce 70% - 75% of the total debt amount. Since much late fees and financial charges have not been added to the principal amount by this time, settling at this stage could be the best decision.

Six months delinquent: Though your creditor might accept a 50% settlement offer at this stage, it does not mean that you end up paying lesser amount if you settle lately. Since you have missed six consecutive payments, you have already accumulated lots of late fees and other financial charges. As a result, the principal debt amount is quite high by this time.

Charged-off account: If the account is charged-off, it is likely that your creditor would sell the account to a debt buyer. Dealing with these debt buyers is a nightmare. They often charges collection fees and deny to accept any repayment plan. However, a professional debt settlement company can help you settle your account with collection agencies.

Creditor is going to sue you: Creditor can file lawsuit against consumer. Once a judgment enters your credit report, it stays there for 7 to 10 years. If you have received summon already, settlement companies are unlikely to work with you. However, there are certain law firms and attorneys that can guide you to get an out-of-court settlement.

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