3) setting up a favorable payment plan with the creditor, where the consumer pays back a substantially reduced balance over 3 to 6 months.
4) in some cases, settlements cannot be obtained (usually because a consumer lacks the savings necessary or the creditor is pushing for litigation to resolve the account) – in these instances we are usually forced to set up a payment plan on the account where the consumer pays the balance back in full, plus interest, as well as interest and late fees that accrued up to that point.

How to Choose Credit Repair Service
A credit repair company can provide you professional services to fix your credit, they offer instant loans to repair all your debts, they can guide you on how to clean all your bad history, assist you with your mortgage, recommend an attorney for legal advice and also assist you with your credit card payments.

Searching online can take a bit of time and results that come up may vary. It definitely helps to think about what you are seeking before you type in the search box. There are many credit repair companies who specialize in different areas, but they may not be the right one for you.

Some offer financial programs & information to help you with your credit rating. Other companies offer loans to consolidate your debts. So whatever you are searching for, think about

it before starting that way your list is minimized to match up to your particular needs.

To break it down even further, perform a background check on the business. Look into how long they have been specializing in this field, what qualifications and credentials they hold and the customer satisfaction rate. Researching background information can be very useful to you, because it may just guide you in the right direction.

Saturday, November 7, 2009

Debt Settlement

Do you want to start the process on your own? First step is to identify how much you owe. The collection company can provide you with that number, or it the debt isn't in collections, call the creditor directly. Next write a letter with your offer amount and attach a debt settlement agreement as an attachment. If your creditor accepts, then you have completed a debt settlement. Repeat process with each creditor. During our country's current financial situation, you may find creditors anxious to settle.

Here's an example of the first letter ... the offer letter.

Dear (name of creditor), re: (account number)

I appreciate that your company is willing to work with me in settling my debt and paying it off. This letter serves as my counter offer in response to the settlement amount provided to me when I spoke to your customer service representative on (date).

The amount that I propose to settle the debt in full is $________. However, I would request you to remove any late payment entry or charge-offs on this account from my credit report.

I'd like to inform you that I have several debt accounts with other creditors as well. Unfortunately I have limited funds. So, I can pay only those creditors who are willing to meet my terms. I have already reached mutual agreeable settlements with a few creditors and doubt whether I'll have enough funds to pay everyone.

If your company is willing to accept my proposal, please sign the attached letter of agreement and return a signed copy of the same to me. As soon as I receive this signed acknowledgement agreement, I'll send you the money order for the proposed amount.

Sincerely yours,
Your signature & name

Click here for a sample of the debt settlement agreement.

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Debt Reduction Program Provides Debt Relief

Do you qualify for a stimulus balance payoff?

Obama's economic stimulus helps create jobs, and give Americans the opportunity to payoff their outstanding balances for a fraction of the total, thus stimulating the economy. You can qualify for a stimulus balance payoff from the following creditors: credit cards, medical/hospital, department store credit cards, personal unsecured loans, overdue rent and auto repos.

Participants in the Program may be able to settle their debts for less than they owe. This program is especially designed for consumers overwhelmed by credit card debt, repossessions, personal loans, collections debt, etc. With Debt Reduction, you can become debt free quickly without a bankruptcy and without much expense.

How the Program Works
Once a consumer has enough money saved, the Debt Reduction Program agents negotiate with the creditor and attempt to convince them to accept a lump sum settlement offer. Every time a debt is settled the consumer receives the settlement letter for their records. Average reductions range between 40 and 60 percent of what is owed at the time of settlement (not including fees), and the creditor reports the debt as "settled" or "paid" on the consumer's credit report and signs a document releasing the client of any legal obligation for paying the rest of the debt.

We reduce debts in one of four ways:
1) paying the account off individually with a lump sum;
2) paying off the account with a batch of other accounts that the agent is handling with the same creditor. For example, if an agent has 100 accounts with Chase and each consumer owes approximately $1000 at the time of negotiations, then the agent may settle all of the accounts at once for $40 to $60K total (paid from the appropriate consumers' savings account);