Personal Debt Settlements - How to Qualify For a Debt Settlement Deal
The personal debt settlement is a negotiation and agreement between you and your creditor.
When two parties are involved then if both agree for this only then the settlement can be reached.
What are the conditions to qualify for personal debt settlement? The only condition is that it should be favorable for both the parties.
If your debt amount is more than $10k then you can go for the debt settlement.
This figure ($10k) is very important as the debt settlement involves the lot of input from your side.
You will not get much benefit for any thing less then $10k and on top of it your credit rating will be get down.
The creditor will think of settlement when all other options available with them for the debt recovery are exhausted.
Assume you are paying your credit card bill on time.
In this scenario they don't have to think for any options to recover their money.
If you don't pay the bills for few months they will start calling you and start giving you options.
Beware; the options given by them will always be in their favor.
They will ask you to pay the debt amount as installment and the second option will be of less interest rate and installments.
Obviously you will get to know about the second option only when you don't agree to the first one.
If you don't agree to their second option then they will use recovery agent to recover their money.
No need to worry.
The recovery agent can not trouble you mentally or physically.
The financial institution or the recovery agent cannot mess with the legal system of the country.
When you don't bow under the pressure of recovery agent then the creditor will request you to pay back your debt and will give you debt settlement as option.
Any option given by the creditor will be much in their interest.
To save your interest and get the most out of the debt settlement it is advisable to hire the debt relief firms or the counselors who can help you in the entire process of settlement and will save your interest more than what you can do for yourself.
These debt firms are in the system and know the system.
This is their advantage over you.
When two parties are involved then if both agree for this only then the settlement can be reached.
What are the conditions to qualify for personal debt settlement? The only condition is that it should be favorable for both the parties.
If your debt amount is more than $10k then you can go for the debt settlement.
This figure ($10k) is very important as the debt settlement involves the lot of input from your side.
You will not get much benefit for any thing less then $10k and on top of it your credit rating will be get down.
The creditor will think of settlement when all other options available with them for the debt recovery are exhausted.
Assume you are paying your credit card bill on time.
In this scenario they don't have to think for any options to recover their money.
If you don't pay the bills for few months they will start calling you and start giving you options.
Beware; the options given by them will always be in their favor.
They will ask you to pay the debt amount as installment and the second option will be of less interest rate and installments.
Obviously you will get to know about the second option only when you don't agree to the first one.
If you don't agree to their second option then they will use recovery agent to recover their money.
No need to worry.
The recovery agent can not trouble you mentally or physically.
The financial institution or the recovery agent cannot mess with the legal system of the country.
When you don't bow under the pressure of recovery agent then the creditor will request you to pay back your debt and will give you debt settlement as option.
Any option given by the creditor will be much in their interest.
To save your interest and get the most out of the debt settlement it is advisable to hire the debt relief firms or the counselors who can help you in the entire process of settlement and will save your interest more than what you can do for yourself.
These debt firms are in the system and know the system.
This is their advantage over you.
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