Debt Settlement Qualifications - Over $10k in Unsecured Debt? Cannot Repay? Consider Settlement
If you are thinking about debt settlement there are some debt settlement qualifications you should keep in mind.
Basically the rule of thumb is that debt settlement becomes a good idea if you have over $10k in unsecured debt.
If your debt has become larger than $10k then it is a good idea to consider debt settlement.
The reason for this is that this makes sure the premium you pay is less than your debts cancelled.
Another reason is that creditors will only take you seriously if you have large amount of debt.
Another one of the qualifications is that you must have missed more than 3-4 payments.
If you are, for example, only 1 month late on your payments than the creditor will think that you are just trying to get your debts reduced because you do not want to pay the full amount, But when you miss 3-4 payments it becomes obvious you are doing this only because you cannot pay.
The creditors will only agree to a settlement when they start to think that you can't repay your unsecured debt.
And for this they have set some qualifications which they consult to see if they should settle your balance due to get some of their money back.
When thinking about it you have to take into consideration that there are some downsides to debt settlement.
One of these is that you will have your credit score lowered.
However if you can't repay your unsecured amount payable then your only choices are bankruptcy or settlement.
And bankruptcy has a much worse effect on your credit score than debt settlement.
While you can recover from a settlement in 1-2 years and get a good credit score, it will take you about 7 years to get out of the shock of a bankruptcy and back to normalcy.
Another thing that you have to consider is that you have to make sure you go to a good settlement company.
Good companies should be able to reduce your debts by 40-60%.
A sign of a bad settlement company is that they will always ask for an upfront fee and some of them even charge you monthly fees.
Good companies work on commission.
This ensures that they do the best job possible because they get paid more if they work better.
The best choice for you if you fulfill these qualifications is to go to debt settlement networks.
These are networks made for the betterment of the customer and they know which companies are good and which are bad.
Basically the rule of thumb is that debt settlement becomes a good idea if you have over $10k in unsecured debt.
If your debt has become larger than $10k then it is a good idea to consider debt settlement.
The reason for this is that this makes sure the premium you pay is less than your debts cancelled.
Another reason is that creditors will only take you seriously if you have large amount of debt.
Another one of the qualifications is that you must have missed more than 3-4 payments.
If you are, for example, only 1 month late on your payments than the creditor will think that you are just trying to get your debts reduced because you do not want to pay the full amount, But when you miss 3-4 payments it becomes obvious you are doing this only because you cannot pay.
The creditors will only agree to a settlement when they start to think that you can't repay your unsecured debt.
And for this they have set some qualifications which they consult to see if they should settle your balance due to get some of their money back.
When thinking about it you have to take into consideration that there are some downsides to debt settlement.
One of these is that you will have your credit score lowered.
However if you can't repay your unsecured amount payable then your only choices are bankruptcy or settlement.
And bankruptcy has a much worse effect on your credit score than debt settlement.
While you can recover from a settlement in 1-2 years and get a good credit score, it will take you about 7 years to get out of the shock of a bankruptcy and back to normalcy.
Another thing that you have to consider is that you have to make sure you go to a good settlement company.
Good companies should be able to reduce your debts by 40-60%.
A sign of a bad settlement company is that they will always ask for an upfront fee and some of them even charge you monthly fees.
Good companies work on commission.
This ensures that they do the best job possible because they get paid more if they work better.
The best choice for you if you fulfill these qualifications is to go to debt settlement networks.
These are networks made for the betterment of the customer and they know which companies are good and which are bad.
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