One of the great truths about businesses is that everything is up for negotiation. Even when the terms or price seems to be set in stone, it is often as easy to get a discount as knowing whom to ask and how to ask for it. This is the principle forms the basis of the concept of debt settlement.
In simple terms, debt settlement can be defined as a process of offering a large, one-time payment for an existing balance and asking for the forgiveness of the remaining debt amount.
For instance, if you owe $10,000 to a creditor, you can approach them and offer to make a one-time payment worth $7,000. In return for this payment, the creditor agrees to forgive the rest of your debt. Curadebt helps people with this type of debt reduction plan. Visit this site for more info on how exactly it works.
Why would any creditor go for this option? This is the most commonly asked question about debt settlement. Most creditors settle for this form of repayment because they are relieved to receive something than nothing at all if the borrower goes bankrupt.
However, you need to be careful when you opt for debt settlement because there have been a lot of scams. You need to use a reliable agent who can negotiate on your behalf with your creditors. There are several ways debt settlement can help you in the long term, which include:
The biggest reason that most people are willing to go for debt settlement is to avoid bankruptcy. It’s what Curadebt specializes in. The occurrence of bankruptcy is something that will cast its shadow on the rest of your life.
This is due to the fact that the entry for bankruptcy stays on your credit report for about 10 years, but lots of credit card, loan and job application companies will ask you if you have ever gone through the process. You cannot lie because you can be penalized later for if the truth comes to light. When debt settlement is done right, you can avoid filing for bankruptcy and it only stays on your credit report for about seven years.
Relief from increasing debts
The purpose of debt settlement is not to pull a one-over on your creditors by only paying some of the debt you have accumulated. Therefore, it is unwise to rack up huge amounts of debt in the hopes of settling it in the future. Debt settlement can help you when you are legitimately drowning in debt and may not be in the position to pay it all.
Repay your debts quicker than expected
Another way a good debt settlement program can help you in by letting you repay your debts in about two to four years. This is a lot less than you would otherwise spend on paying back your debts normally as a normal payment schedule can take decades to pay off. In addition, debt settlement also costs you less.
You can take advantage of debt settlement as long as your creditors are willing to negotiate and settle for a lesser amount than the original debt. That’s why it’s wise to have companies like Curadebt do the work for you. They have the expertise to convince your creditors that it’s in their best interest to allow you to do this.
Obviously, you can attempt to do it all yourself. But most people just aren’t equipped to do it. They lack the negotiation skills for dealing with creditors in this manner.