Debt Settlement
Debt Settlement
Debt settlement is an agreement made between a creditor and a consumer in which the total debt balance owed is reduced and/or fees are waived, and the reduced debt amount is paid in a lump sum instead of revolving monthly.
Most unsecured debt is eligible for debt settlement … if the creditor agrees! The creditor is under no obligation to accept a settlement proposal.
Unsecured debt includes things like credit card debt, store cards, personal loans, medical bills – any debt that isn’t tied to property that the creditor can take back.
Debt settlement can offer a solution, though, as you’ve already read above, it should be approached carefully. A debt settlement company can work with your creditors to accept a smaller amount than what you owed. That said, it has to be approached carefully, because working with a debt settlement company may not solve the problem and can even put you in a deeper financial hole.
