The Debt Ninja Walks You Through Preparing For Debt Settlement
In a world where debt has gotten out of control, it is more important than ever to look at the different ways of dealing it. This stressful and sometimes painful process involves looking into all area of our financial lives to see how we can better organize it.
You don’t have to face this daunting task alone. The Debt Ninja can guide you in the process of organizing your debt to make it easier to deal with through debt consolidation, bankruptcy, or debt settlement. For many people, the best solution is debt settlement.
The Debt Ninja Explains Debt Settlement
The practice of debt settlement involves getting rid of debt by paying it off at a lesser amount than originally owed, or settling as it is also called. For the most part, this can be carried out by factoring out and removing the interest that was incurred on the debt itself. Debt settlement has advantages and disadvantages.
The Debt Ninja Discusses Some Of The Advantages:
- The biggest advantage is that it gets rid of the debt by settling it outright and usually saves you money in the long run.
- The consumer pays cents to the dollar.
- Some creditors will mark the debt off as “paid in full” if you settle it at an amount that is satisfactory with the creditor.
- While it is mostly unsecured debt such as credit card debt with high interest rates, medical bills can also be easily settled.
A Few Things The Debt Ninja Wants You To Know About Debt Settlement Services:
- The consumer must be more than 6 months behind with their monthly payments.
- A debt that has been settled can remain on your credit report for up to seven years and the amount that is not paid back is taxed. As a result, it will negatively impact your financial creditworthiness and prevent you from getting new loans. It can also impact job searches, as well as finding decent housing options should you decide to move during the seven years. However, if you settle enough of the debt to satisfy the creditor, then it is possible that they may mark the debt off as “paid in full”.
- Unlike debt consolidation where you can make one big lump payment to contribute to several debts at one time, debt settlement involves making one big payment. The upside is that it may be significantly less than what was originally owed. Overall the amount that is settled is usually so many cents per every dollar of the amount owed in the original balance.
The Debt Ninja On What Debts Qualify For Debt Settlement
Any unsecured outstanding debt can usually qualify for debt settlement. Typically creditors accept settlements on debts such as a credit cards and store cards, student loans or medical bills.
The debt has to be a minimum of six months old and already written off and sold to a collection agency. Any debts that are less than six months old should be discussed with the individual creditor to reach a compromise, or they may qualify for debt consolidation.
Don’t let your debts get you down. You don’t have to fight your creditors alone. Don’t wait another day, call the Debt Ninja at 1-888-652-4178 and breathe easier knowing he will fight the battle for you.