Today consumers are overwhelmed with credit card debt. The reason why consumers are seeking some type of debt relief is because they have incurred a recent financial hardship. This hardship has taken the form of either losing their job, reduced hours, divorce, death or a medical emergency.
The majority of consumers want to pay off their obligations however they are at a stand still and not sure where to turn. The consumer is on an emotional roller coaster and is seeking ways to make ends meet.
One option is a debt settlement company. A debt settlement company is a third party which will negotiate with the lenders on behalf of the consumer. In most cases, a debt settlement company is able to reduce the consumer’s outstanding balances by up to 40% to 50%. So considering that a consumer may have more than $10,000 in unsecured credit cards this debt might be cut in half. The savings to the consumer is monthly interest on their cards and the debt reduced from $10,000 to $5,000.
Using a debt settlement program is not a quick fix or an overnight solution to the consumer’s situation. However, it allows the consumer to save monies into a “trust/escrow” account over a period of time. Normally, this amount is less than what their combined monthly minimum payments are on the debt. The debt settlement company begins negotiation with the lender when at least half the monies are saved against the lowest outstanding debt. An example is if you owe $30,000 on five credit cards and the lowest balance is $5,000, when you have approximately $2,500 in the “trust/escrow” account the company will start to settle with the lender.
Therefore, call your debt settlement expert today to discuss how they can help you.
