Debt Settlement Works, But don't Wait To Long

     If your debt is at the point where it is oppressing you or you do not see an end in sight, them it may be time to consider debt settlement as an option. Debt Settlement in recent years has grown up. A bad economy, coupled with outrageous usurious interest rates and ridiculous fees  charged by credit card banks which have become extremely aggressive in there marketing. Additionally, because banks are acutely aware that default rates are rising among credit card users, they have become only slightly more willing to accommodate your crises.

    If you are in a situation in which you have tried unsuccessfully to work things out with your creditors, do not waste me. If you cannot afford a debt management program, which is totally controlled by the banks but administered through non-profits, and do not want or are not eligible to file for a bankruptcy, then a debt settlement program may well be right for you.

    The very best debt settlement programs are administered by attorneys. So when looking for a settlement program, make sure you choose one that is administered by an attorney or law firm that specializes in debt relief. You also want to check the fee structure and make sure there are some type of prorated guarantees, so that, in the event you are forced to withdraw from the program, you can receive a refund, pro rated, based on the amount of work the firm has completed on your behalf. Each debt settlement  law firm will have its own set of criteria for accepting your accounts into their program. Basically, non of them will accept an account on which you have already been sued by the creditor or collection agent. Hence the title," don't wait to long". Some credit card banks have stepped up collection efforts for past due accounts. Some will forward your delinquent creditor card account to there in house counsel to start a judgment proceeding against you after 90 days. This is a major change from even two years ago, which is why I say, do not wait to long.

    If you are already enrolled in a good debt settlement program, and you are sued, then a good settlement company will advise you accordingly. Since the best settlement attorneys have relationships with collectors and creditors, they have some credibility and clout when they represent you. I cannot tell you how many people I have counseled with who have finally come to the point, after receiving a threatening letter from a collector to start exploring settlement programs only to find the collector has sued before they could finalize the enrollment process. Most settlement lawyers will charge a fee of about 15 to 25% of your debt which you will pay in monthly installments. Even with the fees the entire program including fees and settlement charges should not cost you more than about 55% of your total debt. Thats a pretty dramatic savings. Many of the better settlement companies also offer bankruptcy service, so even though you do not want to file a bankruptcy, it can be used as a viable threat against a creditor who does not want to cooperate, and afford you with an additional level of protection.

  If you would like more information on credit counseling and debt relief options, please feel free to subscribe to the newsletter feed from this blog at: http://freecreditcounselingblog.typepad.com/creditcounseling/ . The newsletter is free and your information is never shared. Please also feel free to contact the author using the contact information below.

Written By:
Steven Ciantro
NIFCE Certified Credit Counselor
www.americandebtenders.com
Help@americandebtenders.com
877-766-2465

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