Debt Settlement - New York
Are you falling several months behind on your credit card debt payments, desperately seeking relief options, and considering one called debt settlement? Do you feel as though in spite of your best efforts, you seem to be going nowhere with your payments? If you are, you're not alone. Many residents in New York and elsewhere are also experiencing their own personal debt crisis due to any number of reasons, like a loss of a job, medical expenses, or an unexpected personal hardship. But the good news is, you have several options that may provide you with relief from credit card debts, including a process known as debt settlement.
Debt settlement is an approach where consumers can try to negotiate with their individual creditors to pay a substantially reduced amount of their original debts. For many consumers who have an unmanageable amount of credit card debts, debt settlement may be a preferred option, however, not everyone qualifies for settlement. For others, a different approach might work, such as debt consolidation. What debt consolidation typically involves is combining your multiple credit card and unsecured debts into a single, more manageable, and more lenient payment plan made to a credit counseling agency. Today, both options have become popular alternatives to bankruptcy - which is often an option of last resort because it has a more severe and longer lasting effect on one's credit score.
If you want to find out how debt relief can help you, request a free debt relief analysis and savings estimate . Start now.
What Can You Expect With Debt Settlement?
If you have the type of debt that qualifies for debt settlement, you will typically have the opportunity to negotiate with creditors for a reduced amount of what you originally owe. For many consumers, debt settlement or negotiation may offer an honest and legal way to pay back their debts without declaring bankruptcy.
Keep in mind, however, the potential risks involved: When you enroll in a debt settlement program, your credit score will typically decline. The reason for this is when you settle your debts, it usually involves "falling behind" on your payments in order to set aside funds that can be used to make a settlement offer (or what's also called a lump sum payment). In addition, as you fall behind in making payments, you can also face legal action for, essentially, defaulting on the terms of your credit card agreements.
But, in spite of all these risks, debt settlement has become a popular alternative for many consumers who want to avoid declaring personal bankruptcy.
Choosing a Debt Relief Company
When you decide to seek the services of a debt relief agency, make sure to do your due diligence first and be willing to spend the time in understanding how your debt relief options can affect your credit. It is also a smart move to know what your consumer rights are to ensure that a potential company does have your best interests at heart. For instance, the Federal Trade Commission prohibits for-profit agencies that promote debt relief services over the phone to charge a fee before they settle, or reduce, a consumer's credit card or other unsecured debt. You can find out more information and additional guidelines by visiting the FTC web site.
The bottom line is, if you are truly struggling to make your credit card debt payments and need relief, there is help available for you. Start by finding out your debt relief options today and get a free debt relief analysis along with a savings estimate.