Financial Planning

Are you in financial trouble and looking for a way to write off debt easy? If you answer yes to that question you should consider debt settlement. In this article I’ll tell what it is, how it works and how to use this strategy to get faster out of debt than the regular way of struggling harder to make the money you need.

Think about it from the perspective of the credit card companies that you owe money (this method only works for unsecured debts like credit cards). If they receive the minimum payments from you every month they are in a perfect position where they get all their money plus interest. If on the other hand you stop paying they will fear you going bankrupt and leaving them with nothing. In that case an offer from you to pay a onetime amount of as little as 40% of what you owe them will be much more attractive. So step one is to stop paying.

When you stop paying it’s important that you start saving up for the onetime amount you plan to offer after about four to six month of not paying. You don’t necessarily have to be able to pay the full amount when you contact them after about six month, as you can include in the deal that the payment will be made on a later date.

Another thing you have to do is to contact the companies you owe money to make them stop the late fees and give you a better interest rate. And at some point you also have to present the offer you prepared. When you get to contacting your creditor it is important to be well prepared. Get all the information you possibly could need before you call them up.

The above few steps is a legal way to make a better deal than you would be able to get otherwise, but it might be a good idea to get debt settlement attorney help to avoid costly mistakes.