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Debt Settlement - A 70% Settlement is Beneficial For You As Well As the Lenders

 


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Your search for a legitimate debt relief services ends on the World Wide Web. If you make smart use of the web, you can be rest assured that you will never end up dealing with a fraudulent company. How can you be so certain? The Web contains various tools and resources that can be used by an average individual to quickly identify fraudulent companies.

If your settlement company encourages you to opt for this financial option even if you do not qualify for the same, you should immediately avoid dealing with such a company. The Web is filled with numerous criticisms of debt settlement. One commonly stated criticism is that settlement is thrust down the throat of individuals even if they do not desire the same or need the same.

To treat settlement as a one size fits all solutions is a very big mistake. In fact, settlement is a specialized solution that is available only to those who are at the brink of bankruptcy. If you are unable to repay your debts on time, then chances are high that your lenders will hand over your account to debt collection agencies. As far as the lender is concerned; amount paid by collection agency in exchange of the transfer is the full and final settlement received.

From this point onwards, you shall be dealing with the collection agency alone. This is where settlement comes into play. The agency purchases the bad debt at a very low price. This is because it is taking a huge risk by taking up the task of collection of such a debt. If the agency does not succeed, it will have to bear the loss.

That is the reason why debts are purchased at 5-10% of the original amount. The settlement company steps in and negotiates with the collection agency. It indicates that a 30% settlement will be profitable for the individual as well as the agency.

You will realize that the entire chain of events is based on a single presumption - You make irregular payments. This is the trigger that makes settlement possible. If the debt is still owned by the lender, then you should try to come up with other alternatives instead of opting for debt settlement. A genuine settlement company offering debt relief services will definitely try to help you out according to your financial needs and requirements and not according to its profits. Use the web to find such a settlement company.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:

Free Debt Advice

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